Justin Sun sues Trump-Linked World Liberty over frozen WLFI

The filing, made on April 22 in federal court in California, seeks restoration of Sun’s token rights after private attempts to resolve the dispute over WLFI freeze failed.

Sun identified himself as the largest individual investor in World Liberty and wrote on social media that he had tried to resolve the issue in good faith but the project refused requests to unfreeze his tokens and restore voting rights.

He had previously raised concerns about lengthy lockup periods for WLFI’s governance token and alleged that more than 76% of voting tokens were concentrated in 10 wallets. Those complaints preceded the alleged restrictions on his tokens.

World Liberty Financial posted on its social account that the claims were baseless and included the message: “We have the contracts. We have the evidence. We have the truth. See you in court pal.”

The project also carried out token actions recently, including a reported burn of 47 million WLFI tokens intended to reduce selling pressure.

Sun wrote that the lawsuit does not change his support for President Donald Trump or the administration’s efforts to promote crypto-friendly policy. He added that certain individuals on the project team had operated in ways he says conflict with the president’s values.

Court records with the complaint text and requested remedies were not released in Sun’s social post. Representatives for Sun and World Liberty did not immediately provide further comment.

The case will proceed in federal court in California as the parties prepare for litigation.

The dispute centers on governance matters such as lockup schedules, concentrated voting power and administrative control of token balances, issues that can lead to conflicts among founders, major investors and project teams.