TLDR
- Justin Sun, founder of Tron, has initiated legal proceedings against World Liberty Financial in California federal court
- The lawsuit alleges WLFI improperly froze Sun’s token holdings, revoked his governance voting privileges, and made threats to destroy his assets
- Sun attempted private negotiations before pursuing litigation
- A controversial governance proposal could permanently lock tokens of investors who don’t consent to new terms
- Sun maintains his allegiance to President Trump and pro-crypto policies despite the legal dispute
Justin Sun, the entrepreneur behind Tron, has launched legal action against World Liberty Financial—the cryptocurrency venture supported by the Trump family—through a California federal court filing.
According to Sun’s complaint, the World Liberty Financial team unjustifiably froze his token assets, stripped away his governance voting capabilities, and issued warnings about permanently destroying his holdings without providing adequate justification.
Before pursuing litigation, Sun claims he made efforts to resolve the matter through private channels. However, the WLFI team reportedly declined to restore access to his frozen tokens, compelling him to seek judicial intervention.
Previously among World Liberty Financial’s most significant external investors, Sun has now emerged as one of its most outspoken detractors.
On April 12, Sun made public allegations that the WLFI development team had concealed a blacklisting mechanism within the project’s smart contract infrastructure. This hidden function allegedly grants the team authority to freeze, limit, and essentially seize investor assets.
World Liberty Financial countered these accusations on social platforms, dismissing them as “baseless allegations” and characterizing Sun as “playing the victim.” The organization suggested impending legal consequences, stating: “See you in court pal.”
The Governance Dispute
Tensions escalated further when World Liberty unveiled a governance proposal on April 15. This proposal aims to restructure more than 62 billion WLFI tokens from perpetual lockups into scheduled vesting arrangements.
The proposed framework would impose a two-year lock period on tokens allocated to founders, team personnel, and advisors, followed by a three-year gradual release schedule. Additionally, a 10% token burn would be executed upon proposal approval.
Investors who refuse to accept these revised conditions would face indefinite token lockups under the current framework.
Sun characterized the proposal as “one of the most absurd governance scams” he has witnessed. He argues it masquerades as a governance initiative while effectively functioning as a mechanism to trap investors who don’t actively consent.
Due to the frozen status of his holdings, Sun asserts he’s completely unable to participate in the voting process—neither supporting nor opposing the measure.
Sun Still Backs Trump Despite Legal Fight
In his public statements, Sun emphasized that filing the lawsuit doesn’t indicate any change in his position toward President Trump or the administration.
“Unfortunately, certain individuals on the World Liberty project team have been operating the project in a manner that goes against President Trump’s values,” Sun wrote.
Sun is understood to hold a substantial position in the TRUMP memecoin. This investment secured him access to a cryptocurrency gala dinner in May 2025 and a commemorative watch presented during a special ceremony.
According to CoinCarp analytics platform data, the TRUMP memecoin has 642,882 holders. More than 91% of the total supply is concentrated within the top 10 wallet addresses.
World Liberty Financial has not provided any statement regarding the lawsuit when approached by journalists.
