Sun alleges $45M investment frozen
Tron founder Justin Sun has filed a lawsuit against World Liberty Financial, alleging that the company unlawfully froze his holdings of WLFI tokens following a substantial investment.
Sun alleges that after he became the single largest WLFI token holder—his total outlay reportedly reaching as high as $75 million by late 2024—World Liberty Financial blacklisted his wallet in September 2025. This action came after Sun moved portions of his holdings, though he denies any intent to sell the tokens. The lawsuit contends that these measures were not only unjustified but also concealed from other investors.
The complaint states that the WLFI smart contract was altered in August 2025 to include a blacklisting function without notifying investors or holding a governance vote.
Blacklisting function triggers legal clash
The legal battle intensified when Sun accused World Liberty Financial of secretly modifying the WLFI smart contract in August 2025. The change introduced a “blacklisting” feature, enabling the company to freeze tokens held in specific wallets. Sun argues that this modification was never subjected to a governance vote nor disclosed to stakeholders—a move he says undermines basic investor protections and transparency.
On paper, blockchain governance is meant to be open—but here, Sun claims critical changes went unannounced.
The complaint further alleges that World Liberty Financial used the threat of freezing and burning tokens as leverage. Specifically, Sun asserts that the company pressured him to mint $200 million worth of its USD1 stablecoin on the Tron blockchain, effectively tying his frozen assets to broader corporate objectives. He also claims these tactics were intended to manipulate WLFI’s market price, raising questions about fair dealing within crypto markets.
Governance vote skipped, Sun says
A key contention in Sun’s lawsuit is the alleged exclusion from project governance. He points to an April 15 proposal by World Liberty Financial which would lock founders’, team members’, and advisors’ tokens for two years, followed by a gradual release over three years and a mandatory 10% token burn upon passage. According to Sun, those who do not accept this new schedule—including himself—face indefinite lockup of their tokens under existing terms.
Sun has also criticized how voting power is concentrated within the project. He notes that 76% of voting tokens for this recent proposal came from just ten wallets—a level of centralization he suggests undermines any pretense of decentralized governance. Despite attempts to resolve these disputes privately with World Liberty’s project team earlier in 2026, Sun claims he was left with no alternative but litigation after repeated refusals to unfreeze his assets.
See Also
WLFI responds: "See you in court"
World Liberty Financial has dismissed all allegations as unfounded. In a public response on X (formerly Twitter), the WLFI project team labeled Sun’s claims as “baseless,” adding: “We have the contracts. We have the evidence. We have the truth. See you in court pal.” A spokesperson for World Liberty Financial declined further comment when approached about specifics of the case.
World Liberty Financial’s ties to members of former U.S. President Donald Trump’s family have drawn additional scrutiny amid this high-profile dispute. While some details remain uncertain—such as whether other major investors were affected by similar blacklisting functions—the outcome of this case could set important precedents for token governance and investor rights across crypto projects.
Signals worth watching
If the April 15 WLFI governance proposal passes, founders, team members, and advisors’ tokens will be locked for two years with a 10% token burn, and holders who do not accept the new schedule will have their tokens locked indefinitely under existing terms; whether this proposal is approved or rejected will immediately determine the fate of locked tokens for major holders like Justin Sun.
