On April 22, Justin Sun filed a lawsuit in federal court in California against World Liberty Financial, accusing the project’s team of freezing his WLFI tokens, stripping him of his voting rights, and threatening to destroy his holdings permanently.
Earlier, we reported that Sun had publicly accused WLF of having a built-in backdoor that allowed the team to unilaterally control the funds of any token holder.
What Happened
According to Sun, the WLF team froze his tokens without notice or any justification, barred him from participating in governance votes, and threatened to “burn” his stake — in other words, to destroy it permanently. He says he tried to resolve the dispute out of court, but the project refused to unfreeze his assets and restore his rights as an early investor.
In addition to the lawsuit, Sun also spoke out against a new governance proposal published by WLF on April 15.
“Token holders who do not accept the new terms will face an indefinite lock on their assets,” the document says.
Early buyers are subject to a two-year cliff followed by a two-year vesting period — and the same lockup applies to those who do not agree to the terms. Sun cannot vote against this proposal.
At the same time, Sun stressed that he supports Donald Trump and his push for a crypto-friendly America.
“I am confident that the president would not approve of the project team’s actions if he knew about them,” Sun said.
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