TLDR
- Justin Sun said World Liberty Financial froze his WLFI holdings and blacklisted his portfolio.
- Son said he controls about 4% of WLFI’s voting power but cannot join the vote.
- WLFI has proposed new conditions for the 62.28 billion locked tokens.
- The plan includes a 10% burn of up to 4.52 billion WLFI tokens linked inside.
- WLFI said holders who do not opt in to the new schedule will remain closed indefinitely.
Justin Sun, the largest known investor in Donald Trump’s cryptocurrency project World Liberty Financial, accused the company of freezing his holdings and using a blacklist function hidden in the WLFI token contract. In posts on Reuters reported that it could not independently verify whether such a tool existed or whether it was being used in the manner described by Sun.
This is global tyranny, not global financial freedom – and here’s why
This proposal has been presented as a “signal for governance alignment” and a “long-term commitment”, but if we remove that packaging, what we have is one of the most ridiculous governance scams I have ever seen. Let me… https://t.co/sJhFMnLWsJ
– His Excellency Justin Sun 👨🚀 🌞 (@justinsuntron) April 15, 2026
Son said he was the “first and biggest victim” of the alleged surveillance mechanism, and claimed his assets were frozen in September. He later wrote that on-chain records showed that his digital wallet had been blacklisted by a single account with special administrative authority. However, he did not publish those recordings. Sun also said he controls about 4% of WLFI’s voting power but has been excluded from the current management process because his tokens remain frozen.
World Liberty Financial responded via its official X account, writing:
“We have the contracts. We have the evidence. We have the truth. See you in court.”
A company spokesperson referred reporters to those public posts. Sun did not provide additional comment beyond his X statements.
The governance proposal adds new conflict
The dispute arose when World Liberty Financial published a Governance proposal Covers approximately 62.28 billion WLFI tokens. Under the proposal, 45.24 billion locked tokens held by founders, team members, advisors, foundations and partners would be moved to a two-year cliff and a three-year linear vesting schedule if owners so choose.
This group will also accept a 10% burn, removing up to 4.52 billion WLFI from supply. Another 17.04 billion early supporter tokens will be moved to a two-year cliff and a two-year vesting schedule without burning.
We have just posted a governance proposal in the forum for community discussion, and we believe it represents one of the strongest signals of long-term governance alignment in DeFi.
Here’s what 🧵 does
– WLFI (@worldlibertyfi) April 15, 2026
Bondholders who do not favorably accept the new terms will remain tied up indefinitely under the current structure, World Liberty Financial said. The company made the proposal as a governance alignment measure and said the affected tokens would remain committed to participating in governance for at least two years. In posts on X, the company described the proposal as one of the strongest long-term governance signals in DeFi.
Sun says the voting structure punishes the opposition
Sun strongly criticized this framework and said that the proposal is coercive because bearers who oppose it face indefinite imprisonment. He said a vote cannot be considered valid if some token holders are frozen from participating while others are allowed to vote.
He also said that actual control of the WLFI smart contract rests with 3 out of 5 anonymous multisigs and an anonymous custodian wallet that can blacklist addresses.
Sun said in his post that the governance structure allows a small group of unidentified actors to override the decisions of token holders at the contract level. He also criticized the project’s compliance requirements, saying ordinary voters must identify themselves while those who control the nodes remain anonymous. His publications portrayed the proposal as a dispute over property rights, access to governance, and administrative control.
Company disclosures and the broader context
World Liberty Financial’s risk disclosures state that the company can block and freeze wallet addresses and associated tokens that it determines are associated with illegality or activity that violates its terms. Similar controls exist in some other cryptocurrency projects, including stablecoin issuers that freeze tokens in response to law enforcement requests or internal compliance reviews.
I became the sun A prominent backer of World Liberty Financial in late 2024 and later said he had increased his holdings to at least $75 million in WLFI tokens. In March, the US Securities and Exchange Commission settled a lawsuit filed against Sun in 2023 for $10 million. The case involved alleged fraud, the sale of unregistered securities, and concealment of payments to celebrities to promote cryptocurrency products. Sun did not admit any wrongdoing in that settlement.
The latest dispute now puts World Liberty Financial’s governance model under renewed scrutiny as the company seeks community support for a major token entitlement and burn repair.
