Justin Sun has filed a lawsuit against World Liberty Financial over a dispute involving the WLFI token. Sun said the project froze his tokens and threatened to burn them without proper justification. He said he filed the case in California federal court to protect his rights as a token holder.
The lawsuit follows a public dispute over the project’s token lockup terms and governance process. Sun said he tried to resolve the matter privately before taking legal action. However, he said those efforts failed after the team refused to unfreeze the tokens.
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The case puts fresh attention on World Liberty Financial, a crypto project tied to the Trump family. It also raises questions about crypto governance, token holder rights, and how control is handled inside projects with concentrated voting power.
Justin Sun says frozen tokens forced the WLFI token lawsuit
According to Justin Sun, the dispute reached court only after private talks broke down. He said the World Liberty Financial team did not respond to his requests to restore access to the frozen tokens. As a result, he said legal action became necessary.
Sun said, “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 also said the team threatened to burn his WLFI token holdings “without any proper justification.” That claim now sits at the center of the lawsuit. Therefore, the case is not only about a token lockup, but also about whether a project can restrict or destroy holdings without clear cause.
World Liberty Financial had already faced WLFI token lockup criticism
The lawsuit did not begin in isolation. Earlier this month, Justin Sun had already threatened legal action over the long token lockup period tied to the WLFI token. At that stage, he also raised concerns about how the project handled governance.
Sun said a recent governance proposal lacked transparency. He added that more than 76% of the voting tokens came from just 10 wallets. That detail drew attention because it suggested that a small number of wallets may have controlled most of the voting power.
In response, the World Liberty Financial team rejected the claims. The team called Sun’s accusations “baseless allegations.” It also said, “We have the contracts. We have the evidence. We have the truth. See you in court pal.” That response showed the dispute had already moved into open conflict before the filing in California federal court.
Justin Sun says World Liberty Financial dispute does not affect Trump support
Even while announcing the lawsuit, Justin Sun separated the legal case from his position on US President Donald Trump. He said the dispute with World Liberty Financial does not change his support for Trump or for the administration’s crypto-friendly direction.
Sun said,
“Unfortunately, certain individuals on the World Liberty project team have been operating the project in a manner that goes against President Trump’s values.”
That statement matters because the project is closely linked to the Trump family, and any dispute around it can quickly attract political attention.
For now, the case focuses on several direct issues. These include the WLFI token, the token lockup, the handling of frozen tokens, and the project’s governance structure.
As the lawsuit moves forward in California federal court, attention will remain on how World Liberty Financial managed Sun’s holdings and how much control a small group of wallets had over the project.
Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: April 22, 2026 • 🕓 Last updated: April 22, 2026
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