Crypto entrepreneur Justin Sun has taken legal action against World Liberty Financial, claiming that the project improperly froze his tokens and revoked his governance rights.
Sun announced the lawsuit in a recent post on X.
“Today, I initiated a lawsuit in California federal court against World Liberty Financial to uphold my legal rights as a holder of WLFI tokens.”
According to Sun, the dispute arose from actions taken by individuals linked to the project.
“They unjustly froze all my tokens, deprived me of my voting rights on governance matters, and have threatened to permanently destroy my tokens through ‘burning’ them—without valid justification…
I have made sincere efforts to resolve this issue amicably… However, the project team has rejected my appeals… Leaving me with no option but to seek recourse through the legal system.”
Sun clarified that the disagreement does not indicate a change in his political views.
“I have always been—and continue to be—a staunch advocate of President Trump and his Administration’s initiatives to foster a crypto-friendly America. This lawsuit does not alter my support for President Trump or his Administration.”
The conflict also involves a governance proposal put forth on April 15, which Sun believes could be detrimental to token holders.
He is concerned that the proposal might enforce strict vesting schedules and indefinitely lock tokens for individuals who do not explicitly agree to its terms.
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Image Credits: Midjourney