Justin Sun, Files Lawsuit Over WFLI Token Freeze..."Trusted, but Betrayed"

▲ Justin Sun, Donald Trump, World Liberty Financial (WLFI)/AI generated image

Justin Sun, founder of Tron (TRX), has filed a lawsuit against World Liberty Financial (WLFI), a virtual asset project linked to former US President Donald Trump.

According to a report by cryptocurrency media outlet Cryptopotato on April 22 (local time), Sun filed a complaint against World Liberty Financial in a California federal court. Sun claims that the project team members froze his WLFI tokens without proper cause. He emphasized, "The WLFI team deprived me of my governance voting rights," and "even threatened to burn my tokens."

Sun stated that this lawsuit does not signify a withdrawal of his support for former President Trump. He added that he still supports the Trump administration's efforts to make the United States a crypto-friendly nation. However, he criticized certain individuals within the project team for operating in a manner contrary to Trump's values. He said, "If President Trump knew about these facts, he would never have tolerated it."

The core of this conflict is a governance proposal raised on April 15. The proposal involves converting 62.28 billion WLFI tokens, which were indefinitely locked, into a fixed vesting schedule. Tokens of holders who do not agree to the new terms will be frozen indefinitely. Sun explained that his tokens are frozen, making him unable to vote against this proposal. He denounced the proposal as "the most absurd governance fraud ever."

Sun described World Liberty Financial as a "dictatorship disguised as a DAO." He claims that the project is suppressing dissenting opinions and coercing participation. He stressed that he wants to be treated equally with other early investors. He explained that he tried to resolve the issue privately, but the project rejected his requests, making legal action inevitable.

World Liberty Financial refuted Sun's claims, stating that his allegations are baseless. The project team argues that Sun is feigning victimhood to cover up his own misconduct. They pointed out that this behavior by Sun is a repeated pattern observed in other past disputes. The project stated that they possess sufficient evidence and contracts and will reveal the truth in court.

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