World Liberty Financial faces lawsuit from Justin Sun over frozen governance tokens
According to Sun, the legal action aims to safeguard his interests as a holder of WLFI tokens and does not diminish his backing of President Donald Trump or his administration's initiatives to establish the United States as a crypto-friendly jurisdiction.
Justin Sun, the founder behind the Tron blockchain, has announced he is taking legal action against the Trump-family-affiliated World Liberty Financial project, alleging the platform has improperly frozen his token holdings and made threats to destroy them "without any proper justification."
Through a statement shared on social media platforms Wednesday, Sun revealed that the lawsuit has been filed in federal court in California, with the purpose of safeguarding his investor rights as a holder of the project's tokens.
"I have tried in good faith to resolve this situation with the World Liberty project team without resorting to litigation. But the project team has refused my requests to unfreeze my tokens and restore my rights as a token holder. They have left me with no choice but to turn to the courts," he added.
World Liberty's largest individual backer is Sun, with the project maintaining strong connections to the Trump family.
Earlier this month, Sun had already issued warnings of potential litigation regarding extended lockup timeframes for the governance token of WLFI, while simultaneously criticizing a recent governance proposal from WLFI for its alleged lack of transparency, noting that over 76% of the voting tokens were concentrated in just 10 wallets.
In response to those initial claims, the team behind the WLFI project stated on X that the accusations were "baseless allegations" and added, "We have the contracts. We have the evidence. We have the truth. See you in court pal."
Cointelegraph has contacted the Tron and World Liberty Financial teams for additional comment about the lawsuit.
In the meantime, Sun clarified through his X account that filing the lawsuit has not altered his perspective regarding President Donald Trump or the current administration's policies.
"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 said.