TLDR
- Tron founder Justin Sun filed a lawsuit against World Liberty Financial in a California federal court
- Sun says WLFI froze his tokens, blocked his voting rights, and threatened to burn them without justification
- He tried to resolve the issue privately before filing the lawsuit
- Sun opposes a governance proposal that would lock non-consenting holders’ tokens indefinitely
- Despite the lawsuit, Sun says he still supports President Trump and his crypto-friendly policies
Tron founder Justin Sun has filed a lawsuit against World Liberty Financial, the crypto project backed by the Trump family, in a California federal court.
Sun says the WLFI team wrongfully froze his tokens, removed his ability to vote on governance proposals, and threatened to permanently burn his holdings without any proper explanation.
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
He says he tried to settle the dispute privately before going to court. The WLFI team refused to unfreeze his tokens, which he says left him with no option but to take legal action.
Sun was once the largest external backer of World Liberty Financial. He has since become its most vocal public critic.
On April 12, Sun alleged that the WLFI team had embedded an undisclosed blacklisting function inside the project’s smart contract. He claimed this function allows the team to freeze, restrict, and effectively confiscate investor tokens.
WLFI responded to those claims on social media, calling them “baseless allegations” and accusing Sun of “playing the victim.” The team hinted at legal action, writing: “See you in court pal.”
The Governance Dispute
The conflict deepened after World Liberty released a governance proposal on April 15. The proposal seeks to convert over 62 billion WLFI tokens from indefinite lockups into fixed vesting schedules.
Under the proposal, founders, team members, and advisors would have their tokens locked for two years, then gradually released over three years. A 10% token burn would also apply when the proposal passes.
Token holders who do not accept the new terms would have their tokens locked indefinitely under the existing rules.
Sun called the proposal “one of the most absurd governance scams” he has ever seen. He says it was packaged as a governance move but functions more like a trap for investors who do not actively agree.
Because his tokens are frozen, Sun says he cannot vote on the proposal at all — either for or against it.
Sun Still Backs Trump Despite Legal Fight
Sun was clear in his posts that the lawsuit is not a sign he has turned against President Trump or his 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,” Sun wrote.
Sun is believed to be one of the largest holders of the TRUMP memecoin. That holding earned him an invitation to a crypto gala dinner in May 2025 and a watch presented at a ceremony.
Data from analytics platform CoinCarp shows there are 642,882 TRUMP memecoin holders. Over 91% of the supply is held by the top 10 wallets.
World Liberty Financial declined to comment on the lawsuit when contacted by media.
