Tron founder Justin Sun has stepped into the legal arena, filing a lawsuit against World Liberty Financial (WLFI), a crypto project closely associated with the Trump family, in a California federal court. Sun’s grievance revolves around claims that the WLFI team unjustly froze his tokens, eliminated his voting rights regarding governance proposals, and even threatened to permanently burn his holdings without offer of justification.
In a recent tweet, Sun declared, “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.” This juxtaposition of legal combat with his continued support for the former president adds another layer of complexity to what is already a charged situation.
Sun’s legal actions come after his attempts to resolve the issue privately were met with resistance. According to his statements, despite reaching out to the WLFI team for a resolution, they refused to unfreeze his tokens, leaving him with little choice but to escalate the matter to court.
Previously, Sun was the largest external backer of WLFI, but his relationship with the project has drastically shifted, making him one of its fiercest critics. On April 12, he accused the WLFI team of embedding an undisclosed blacklisting function within the project’s smart contract, which allegedly enables the team to freeze and effectively confiscate tokens from unsuspecting investors.
WLFI quickly responded to these allegations, branding them as “baseless” and accusing Sun of attempting to frame himself as a victim. They hinted at possible legal repercussions by stating, “See you in court pal.”
The dispute intensified following the introduction of a controversial governance proposal on April 15, which aims to convert over 62 billion WLFI tokens from indefinite lockups into fixed vesting schedules. This proposal stipulates that founders, team members, and advisors would have their tokens locked for two years, to be gradually released over the next three years. It also includes a 10% token burn that would be enacted upon passage of the proposal.
Crucially, token holders who do not agree to the new terms risk having their tokens locked indefinitely under existing regulations. Sun has denounced this proposal as “one of the most absurd governance scams” he has ever encountered, asserting that it functioned more as a trap for passive investors than a genuine governance move.
Currently, due to his frozen tokens, Sun finds himself unable to vote on this pivotal governance proposal, rendering him voiceless in a decision that significantly impacts his investment.
Despite the ongoing legal battle, Sun has clarified that his lawsuit does not constitute a shift in his support for President Trump or his pro-crypto policies. He stated, “Unfortunately, certain individuals on the World Liberty project team have been operating the project in a manner that goes against President Trump’s values,” reinforcing his ongoing allegiance even through turbulent waters.
Sun is also recognized as a major holder of the TRUMP memecoin, a position that earned him an invitation to a prestigious crypto gala dinner in May 2025 alongside notable personalities and a commemorative watch presented at a ceremony.
As of now, data from analytics platform CoinCarp reveals that there are 642,882 TRUMP memecoin holders, with over 91% of the total supply concentrated among the top ten wallets.
World Liberty Financial has yet to publicly comment on the lawsuit and its implications, leaving many to speculate the forthcoming legal and operational ramifications of this high-profile dispute in the crypto space.
