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Justin Sun sues Trump-linked World Liberty over disputed token freeze and governance proposal

Justin Sun sues Trump-linked World Liberty over disputed token freeze and governance proposal

Sun's lawsuit challenges World Liberty's claims of decentralization amid token-freezing controversies and governance disputes.

Justin Sun, the founder of TRON, has taken legal action in a California federal court against World Liberty Financial, a DeFi project supported by President Donald Trump’s sons Eric Trump and Donald Trump Jr.

Sun claimed in a Wednesday statement that his WLFI tokens were wrongfully frozen and his governance rights were taken away without a valid reason. He argued World Liberty’s actions contradicted fairness and transparency.

The dispute between TRON founder Justin Sun and World Liberty Financial started in September 2025, when the Trump-backed project blacklisted his WLFI wallet and froze roughly 540 million unlocked tokens.

The move followed on-chain transfers of around $9 million worth of WLFI to exchanges, which WLFI flagged as possible early selling, though Sun argued the transfers were only minor tests.

The dispute remained unresolved for months then resurfaced as the project came under renewed scrutiny over governance and borrowing activity.

In a statement on April 12, Sun accused World Liberty of using a concealed blacklist function in its smart contract that can freeze or restrict token holders’ assets without notice, undermining decentralization.

The crypto entrepreneur said the mechanism contradicts WLFI’s stated mission and claimed governance processes used to justify such actions lacked transparency and fairness. He called for restored access, improved transparency, and stronger governance safeguards.

In reply, the WLFI team said Sun was playing victim and signaled that the dispute would be resolved in court.

Sun said in today’s statement that he attempted to resolve the matter without litigation but was denied relief. He also criticized a recent governance proposal that could lock tokens indefinitely for non-accepting holders, while noting that he was unable to vote due to the restrictions.

He emphasized continued support for President Trump and the administration’s crypto-friendly direction, clarifying the dispute is with the project team, not political leadership.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.

Justin Sun sues Trump-linked World Liberty over disputed token freeze and governance proposal

Justin Sun sues Trump-linked World Liberty over disputed token freeze and governance proposal

Sun's lawsuit challenges World Liberty's claims of decentralization amid token-freezing controversies and governance disputes.

Justin Sun, the founder of TRON, has taken legal action in a California federal court against World Liberty Financial, a DeFi project supported by President Donald Trump’s sons Eric Trump and Donald Trump Jr.

Sun claimed in a Wednesday statement that his WLFI tokens were wrongfully frozen and his governance rights were taken away without a valid reason. He argued World Liberty’s actions contradicted fairness and transparency.

The dispute between TRON founder Justin Sun and World Liberty Financial started in September 2025, when the Trump-backed project blacklisted his WLFI wallet and froze roughly 540 million unlocked tokens.

The move followed on-chain transfers of around $9 million worth of WLFI to exchanges, which WLFI flagged as possible early selling, though Sun argued the transfers were only minor tests.

The dispute remained unresolved for months then resurfaced as the project came under renewed scrutiny over governance and borrowing activity.

In a statement on April 12, Sun accused World Liberty of using a concealed blacklist function in its smart contract that can freeze or restrict token holders’ assets without notice, undermining decentralization.

The crypto entrepreneur said the mechanism contradicts WLFI’s stated mission and claimed governance processes used to justify such actions lacked transparency and fairness. He called for restored access, improved transparency, and stronger governance safeguards.

In reply, the WLFI team said Sun was playing victim and signaled that the dispute would be resolved in court.

Sun said in today’s statement that he attempted to resolve the matter without litigation but was denied relief. He also criticized a recent governance proposal that could lock tokens indefinitely for non-accepting holders, while noting that he was unable to vote due to the restrictions.

He emphasized continued support for President Trump and the administration’s crypto-friendly direction, clarifying the dispute is with the project team, not political leadership.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.