Breaking: Justin Sun Files Lawsuit Against Trump’s World Liberty Financial

Tron founder Justin Sun filed a lawsuit at a federal court in California against U.S. President Donald Trump’s World Liberty Financial. The suit stems from a conflict over ownership of his frozen WLFI tokens and voting rights in the ecosystem.

Justin Sun Submits Lawsuit Against Trump-Backed WLFI

In a statement on X, Justin Sun shared, “Today, I filed a lawsuit in California federal court against World Liberty Financial to protect my legal rights as a holder of $WLFI tokens.” The Tron founder claims that the project team members froze his holdings without justification.

He argued that his tokens were “wrongfully” frozen and his voting rights were suspended. Moreover, Sun noted that he was intimidated with the permanent destruction of his holdings via a token burn.

The allegations come after previously Justin Sun called out Trump’s WLFI for enabling a hidden “backdoor blacklisting” feature. At the time, he noted that it allowed the team to “freeze, restrict, and effectively confiscate” any user’s assets.

WLFI Token Lock-Up Proposal Under Fire

Another major point is that the freeze has deprived Sun of being involved in a major decision on governance. He cautioned a WLFI proposal released on April 15 might have tough conditions on the token holders.

Justin Sun highlighted the terms, which includes permanent lockups on non-acceptors of the proposal. The proposal asks to burn 10%, which if refused will lead to permanent burns.

Further, it “imposes a two-year cliff followed by a two-year vesting schedule” for early investors like Sun. However, the Tron founder noted that he “strongly” opposes WLFI’s latest initiative but can’t vote as his rights are reserved currently.

Despite this, Sun continued to support Donald Trump and his crypto-friendly approach. He claimed that the way some individuals are operating the project “go against President Trump’s values.” He mentioned that the president would not endorse such actions in case he knew about them.

Justin Sun also claimed to have tried to settle the dispute, yet had the project team denied him. He added that the WLFI team refused to revert his tokens and reinstate his rights. “All I want is to be treated the same as every other early investor who received tokens—no better, no worse,” he added.

Thus, Sun presented the lawsuit as an appeal to fairness and openness of the project. Meanwhile, the Trump-backed project is facing heat from other investors as WLFI controversy on $75 million borrowing escalated lately.

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