TRON founder and crypto billionaire Justin Sun has filed a federal lawsuit against World Liberty Financial ($WLFI), the decentralized finance project linked to President Donald Trump and his family.
He accused the venture of wrongfully freezing his tokens, stripping him off his governance voting rights, and threatening to permanently burn his holdings.
In a post on X (formerly Twitter), Sun disclosed that the lawsuit was filed in the U.S. District Court for the Northern District of California. He emphasized that the legal action targets certain individuals on the World Liberty project team and does not reflect any change in his support for President Trump or the administration’s pro-crypto policies.
Register for Tekedia Mini-MBA edition 20 (June 8 – Sept 5, 2026).
Register for Tekedia AI in Business Masterclass.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab.
Part of his post reads,
“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. This lawsuit does not change how I feel about President Trump or the Trump 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. 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. I do not believe President Trump would condone these actions if he knew about them.”
According to Sun, the dispute escalated after the project team froze all of his $WLFI tokens without proper justification. This action allegedly removed his ability to vote on governance proposals and included threats to permanently destroy (burn) the tokens.
Sun claims he attempted to resolve the matter privately but was left with no choice but to turn to the courts. “All I want is to be treated the same as every other early investor who received tokens no better, no worse,” he added.
The lawsuit comes amid growing tension over a governance proposal published by World Liberty Financial on April 15. Sun strongly opposes the proposal, which he says would impose strict vesting schedules and indefinite token locks on holders who do not “affirmatively accept” its terms.
Specifically, the proposal reportedly requires a 10% permanent burn of advisor tokens and introduces a two-year cliff followed by a two-year vesting period for early purchaser tokens.
Because his tokens are frozen, Sun says he is unable to cast a vote on the matter. He described the proposal as “bad for the community” and argued that the team’s actions contradict the principles of fairness, transparency, and decentralization that define crypto.
Background of the Investment
Sun is reportedly one of the largest outside investors in World Liberty Financial, with reports suggesting he committed around $75 million to the project.
World Liberty Financial, backed by Eric Trump and Donald Trump Jr., positions itself as a DeFi platform aimed at promoting crypto adoption under a pro-crypto U.S. administration.
The project has faced previous scrutiny, including allegations of centralized control features that allow token freezes. Sun had publicly raised concerns about these mechanisms in recent weeks.
Amid the legal dispute, several users on X have pointed back to Sun’s controversial involvement with the Steem blockchain during its 2020 governance crisis.
At the time, Sun had acquired the social blockchain platform through TRON-affiliated entities and supported a major “network takeover” effort.
Critics accused him of:
•Using exchange-based voting power to influence governance decisions
•Installing new validators without broad community consensus
•Centralizing control in what was originally a decentralized ecosystem
That episode eventually led to a major community split and the creation of a forked chain known as Hive, formed by users who rejected the takeover.
Beyond personalities, the controversy highlights a recurring tension in decentralized systems.
Broader Implications
The case highlights ongoing risks in high-profile crypto projects, particularly around token holder rights, governance transparency, and the gap between “decentralized” marketing and actual smart contract controls.
Legal experts note that disputes of this nature often center on whether token purchase agreements grant holders clear property rights or if project teams retain broad administrative powers.