Justin Sun says his cryptocurrency investment has been frozen, and he’s now suing


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TLDR

  • Tron founder Justin Sun has filed a lawsuit against World Liberty Financial in a federal court in California
  • Sun says WLFI unjustifiably froze his codes, withheld his voting rights, and threatened to burn him down
  • Try to solve the problem privately before filing a lawsuit
  • Sun opposes a governance proposal that would lock tokens for non-consenting holders indefinitely
  • Despite the lawsuit, Sun says he still supports President Trump and his cryptocurrency-friendly policies

Tron founder Justin Sun has filed a lawsuit against World Liberty Financial, the cryptocurrency project backed by the Trump family, in a federal court in California.

Sun says the WLFI team wrongly froze his coins, removed his ability to vote on governance proposals, and threatened to permanently burn his holdings without any proper explanation.

He says he tried to settle the dispute privately before going to court. The WLFI team refused to unfreeze its tokens, which it says left it no choice but to take legal action.

Sun was once World Liberty Financial’s largest outside backer. He has since become her most vocal public critic.

On April 12, Sun claimed that the WLFI team had included an undisclosed blacklist function within the project’s smart contract. He claimed that this functionality allows the team to effectively freeze, restrict and confiscate investors’ tokens.

WLFI responded to the allegations on social media, calling them “baseless allegations” and accusing Sun of “playing the victim.” The team hinted at legal action, writing: “See you in court my friend.”

Governance dispute

The conflict deepened after that Universal freedom It released a governance proposal on April 15. The proposal seeks to shift more than 62 billion WLFI tokens from indefinite holdings to fixed vesting schedules.


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Under this proposal, tokens would be locked for founders, team members, and advisors for two years, and then gradually released over three years. A nominal burn of 10% will also be applied when the proposal is passed.

Token holders who do not accept the new terms will have their tokens locked indefinitely under the current rules.

Sun called the proposal “one of the most ridiculous governance scams” he had ever witnessed. He says it was introduced as a governance step, but it acts like a trap for investors who don’t actively agree.

Because his tokens are frozen, Sun says he can’t vote on the proposal at all — either for or against.

Sun still supports Trump despite the legal battle

Sun has been clear in his posts that the lawsuit is not a sign of a turn against him President Trump Or manage it.

“Unfortunately, some individuals on the World Liberty project team were managing the project in a manner inconsistent with President Trump’s values,” Sun wrote.

Sun is believed to be one of the largest holders of the TRUMP memecoin. This contract earned him an invitation to a cryptocurrency dinner in May 2025 and a watch that was presented at the event.

Data from analytics platform CoinCarp shows that there are 642,882 Trump coin holders. More than 91% of the supply is held by the top 10 wallets.

World Liberty Financial declined to comment on the lawsuit when contacted by the media.





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