Justin Sun Files Federal Lawsuit Against World Liberty Financial Over Frozen WLFI Tokens

TL;DR

• Lawsuit Filed: Justin Sun sued World Liberty Financial in California, alleging the team froze his WLFI tokens and removed his governance rights.
• Governance Dispute: Justin Sun claims the project embedded a blacklisting function in its smart contract and refused to restore his access, prompting a prolonged public feud.
• Vesting Proposal Clash: Justin Sun opposes World Liberty’s new vesting plan for more than 62 billion WLFI tokens, arguing it imposes unfair conditions on early investors and leaves non‑participants locked indefinitely.
  

  ---

Tron founder Justin Sun announced that he filed a lawsuit in a California federal court against Trump‑linked World Liberty Financial, stating that the project froze his WLFI tokens and removed his ability to participate in governance. In a post on X, Justin Sun stated that the team’s actions left him with no option but to seek legal intervention after repeated requests to restore his rights were denied.

Today, I filed a lawsuit in California federal court against World Liberty Financial to protect my legal rights as a holder of $WLFI tokens.
 
I have always been—and remain—an ardent supporter of President Trump and his Administration’s efforts to make America crypto friendly.…

— H.E. Justin Sun (@justinsuntron) April 22, 2026

Allegations of Token Freezes and Governance Restrictions

According to Justin Sun, World Liberty Financial froze all of his WLFI tokens, blocked him from voting on governance proposals, and threatened to burn his holdings without proper justification. He stated that the project team refused to unfreeze the tokens or reinstate his rights as a token holder. Justin Sun added that these actions forced him to pursue legal remedies to protect his position as an early investor.

Ongoing Dispute Between Sun and World Liberty

The conflict escalated over recent weeks, with Justin Sun becoming one of the project’s most vocal critics despite previously being its largest external backer. He alleged that the WLFI smart contract contained an undisclosed blacklisting function capable of freezing or restricting investor tokens. World Liberty responded on X, accusing Justin Sun of making baseless claims and signaling potential legal action of its own.

Controversy Over New Vesting Proposal

World Liberty recently introduced a proposal to convert more than 62 billion WLFI tokens from indefinite lockups to fixed vesting schedules. The team said tokens belonging to holders who do not accept the schedule would remain locked but still usable for governance. Justin Sun criticized the plan, calling it an unacceptable approach to governance and arguing that it imposed unfair restrictions on early purchasers.

Sun’s Position as an Early Investor

In his latest statements, Sun reiterated that he opposes the vesting proposal and wants equal treatment with other early investors. He said the plan imposes a two‑year cliff followed by a two‑year vesting period, with indefinite lockups for those who do not opt in. Sun emphasized that his goal is to receive the same rights and conditions as other early token recipients.