Sun said he attempted to resolve the matter privately but turned to legal action after requests to unfreeze the tokens were rejected. The dispute follows earlier criticism from Sun over WLFI’s governance structure, lock-up periods, and voting concentration.
Justin Sun Sues WLFI Over Frozen Tokens
Tron founder Justin Sun launched legal action against World Liberty Financial (WLFI), a crypto project closely associated with the Trump family. Sun accused the platform of improperly freezing his tokens and threatening to burn them without justification.
The lawsuit was reportedly filed in a California federal court, and is a dramatic escalation in an already public dispute between one of crypto’s most recognizable entrepreneurs and the politically connected blockchain venture.
Sun announced the lawsuit through social media on Wednesday by saying the move was necessary to defend his rights as a token holder after attempts to resolve the matter privately failed. According to Sun, he approached the WLFI team in good faith and requested that his tokens be unfrozen, but those requests were rejected.
He stated that the project team left him with no alternative but to seek legal remedies. Sun is the largest individual investor in World Liberty Financial, which makes the conflict especially important for the project’s reputation and governance structure.
The dispute did not just pop up overnight. Earlier this month, Sun publicly criticized WLFI over what he described as excessively long lock-up periods tied to the token’s governance model. He also questioned the legitimacy and transparency of a recent governance proposal, and alleged that more than 76% of the votes came from just 10 wallets.
World Liberty Financial strongly denied Sun’s accusations at the time, and called them baseless. The project responded aggressively online, which already made it clear that it was prepared for a courtroom battle.
Despite the legal drama, WLFI’s token price showed resilience over the past 24 hours. According to CoinCodex data, WLFI rose 1.53% over the period, and traded at $0.08013 at press time.
WLFI’s price action over the past 24 hours (Source: CoinCodex)
The token experienced intraday volatility by dipping below the $0.078 range during overnight trading before staging a steady rebound into the morning session. Momentum accelerated when buyers pushed the token toward the $0.080 level.
That rebound suggests traders may be focusing more on short-term momentum and market speculation than on the lawsuit itself.
Sun also explained that the lawsuit does not reflect hostility toward President Donald Trump personally or his administration. Instead, he argued that certain people managing the project were acting in ways inconsistent with Trump’s stated values.
