Hassan Maishera
TL;DR
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Tron founder Justin Sun said he filed a lawsuit today against World Liberty Financial.
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Sun noted that he filed the lawsuit as the WLFI team refused to unfreeze his tokens.
Tron founder Justin Sun has filed a lawsuit against World Liberty Financial in a California federal court, escalating a public dispute over frozen governance tokens and alleged breaches of investor rights.
In a post on X, Sun said the project froze his WLFI tokens, stripped him of voting rights on governance proposals, and threatened to permanently destroy (“burn”) his holdings without justification.
Today, I filed a lawsuit in California federal court against World Liberty Financial to protect my legal rights as a holder of $WLFI tokens.
— H.E. Justin Sun 👨🚀 🌞 (@justinsuntron) April 22, 2026
I have always been—and remain—an ardent supporter of President Trump and his Administration’s efforts to make America crypto friendly.…
He argued that repeated attempts to resolve the issue privately were ignored, leaving legal action as his only option.
Sun Accuses WLF of Freezing Tokens
Sun accused the project team of blocking his ability to participate in governance decisions tied to WLFI tokens, claiming the actions were arbitrary and unfair to early investors.
He also alleged that World Liberty Financial refused to unfreeze his tokens or restore voting rights, despite multiple requests for resolution.
Sun wrote that the team “wrongfully froze all of my tokens” and left him unable to participate in governance, adding that he had no alternative but to bring the matter before the courts.
This latest development comes after earlier allegations from Sun that World Liberty Financial embedded a hidden blacklisting function in the WLFI smart contract. According to Sun, this mechanism could allow the project to freeze, restrict, or effectively confiscate investor tokens.
World Liberty Financial reportedly rejected those claims and accused Sun of misrepresentation, suggesting he was attempting to deflect attention from his own conduct and hinting at possible counter-legal action.
Tensions intensified after World Liberty Financial proposed converting more than 62 billion WLFI tokens from indefinite lockups into structured vesting schedules.
Under the proposal, holders who do not opt in would remain locked out indefinitely but could still participate in governance under existing rules. Sun strongly criticized the plan, calling it “one of the most absurd governance scams” he has seen.
According to Sun, this proposed structure presents an unfair disadvantage to early investors as it imposes a two-year cliff followed by a two-year vesting period, while also penalizing those who do not explicitly accept the terms.
Despite the dispute, Sun said he still supports U.S. President Donald Trump, but claimed some individuals within the World Liberty Financial team are acting against what he described as Trump’s broader principles.
Sun maintained that his position is simple: early investors should be treated equally, without preferential or punitive conditions compared to other token holders.
This latest development comes after the U.S. SEC dismissed claims against Justin Sun and the Tron Foundation last month. The regulator also ordered Rainberry (formerly BitTorrent Inc.), which developed the BitTorrent protocol and BTT cryptocurrency token, to pay a $10 million civil penalty.
