Justin Sun sues World Liberty Financial over WLFI token freeze, governance exclusion

Tron founder Justin Sun said he filed a lawsuit today against Trump-linked World Liberty Financial in a California federal court.

"They wrongfully froze all of my tokens, stripped me of my right to vote on governance proposals, and have threatened to permanently destroy my tokens by 'burning' them — all without any proper justification," Sun said.

"[The] project team has refused my requests to unfreeze my tokens and restore my rights as a token holder," Sun added. "They have left me with no choice but to turn to the courts."

Sun also said he remains a supporter of U.S. President Donald Trump, but alleged that certain individuals on the WLFI team "have been operating the project in a manner that goes against President Trump's values."

"His claims are entirely meritless, and World Liberty looks forward to getting the case thrown out promptly. He engaged in misconduct that required World Liberty to take action to protect itself and its users. World Liberty will continue to take all necessary steps to protect its community," said Witkoff.

The Block reached out to World Liberty and Sun's team for further information.

Sun, once the largest external backer of World Liberty, has emerged as the project's most vocal public critic, engaging in a prolonged feud following its decision to freeze his WLFI tokens.

'Absurd' governance proposal

The project continues to face harsh criticism from Sun. Last week, World Liberty released a proposal, seeking to convert 62,282,252,205 WLFI tokens from indefinite lockups to fixed vesting schedules. 

"Tokens of holders who do not affirmatively accept the vesting schedule will continue to be locked indefinitely and continue to be able to use all of their tokens for participation in governance, subject to the terms of any future unlock proposals," the team wrote in the proposal.

Sun criticized the proposal last week, saying it is "not governance."

"This proposal has been packaged as a 'governance alignment signal' and a 'long-term commitment,' but strip away the packaging and what you have is one of the most absurd governance scams I have ever seen," Sun said last week.

In Tuesday's post, Sun reiterated that he strongly opposes the proposal. "For early purchaser tokens, the proposal imposes a two-year cliff followed by a two-year vesting schedule — and again, for those who do not affirmatively accept, their tokens are locked indefinitely," he said.

"All I want is to be treated the same as every other early investor who received tokens — no better, no worse," Sun added.

The story has been updated to add Witkoff's comment.