Justin Sun Launches Legal Battle Against World Liberty Financial
Tron founder Justin Sun filed a lawsuit in California federal courtroom towards World Liberty Financial (WLFI).
The criticism alleges that the decentralized finance (DeFi) mission fraudulently induced him to take a position, froze his tokens, and threatened to destroy them completely.
Justin Sun’s History With World Liberty Financial
According to BeInCrypto’s earlier reporting, Sun first invested $30 million in World Liberty Financial in late 2024, forward of the token’s market launch. He subsequently constructed up a WLFI place valued at round $75 million and was named as an advisor to the mission.
In September, Sun confirmed that World Liberty Financial had blacklisted his wallet. The pockets held 540 million unlocked WLFI tokens and a pair of.4 billion locked tokens. The freeze adopted on-chain exercise exhibiting outgoing transfers, together with one valued at $9 million.
Since then, the worth of Sun’s locked stash has dropped by an estimated $60 million amid a pointy slide within the WLFI worth. For its half, WLFI has maintained that the freeze was a routine safety measure relatively than a transfer particularly aimed toward Sun.
Earlier this month, Sun alleged that the Trump-backed enterprise embedded a “backdoor blacklisting perform” that may supposedly enable it to freeze, prohibit, and confiscate “property rights of any token holder.” In response to his public accusations, World Liberty Financial challenged the investor to a authorized struggle.
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Tron Founder Sues World Liberty Financial
In his newest submit, Sun mentioned he had made good-faith makes an attempt to work issues out with the World Liberty staff with out heading to courtroom.
However, he claimed the staff rebuffed his requests to unfreeze the tokens and reinstate his rights as a holder, leaving litigation as his solely remaining choice.
“They wrongfully froze all of my tokens, stripped me of my proper to vote on governance proposals, and have threatened to completely destroy my tokens by ‘burning’ them—all with none correct justification. I don’t consider President Trump would condone these actions if he knew about them,” he said. “All I would like is to be handled the identical as each different early investor who obtained tokens—no higher, no worse.”
In the filing, Sun and his affiliated entities accuse World Liberty Financial of breach of contract, fraud, and conversion. The plaintiffs are asking the courtroom to treatment the alleged misconduct and to cease what they describe as World Liberty’s ongoing violation of their rights.
The Tron founder is asking the courtroom to order World Liberty Financial to unfreeze his WLFI tokens, pay damages to be set at trial, and chorus from burning, destroying, or in any other case tampering along with his holdings.
Sun confused that he nonetheless helps President Trump and the administration’s crypto-friendly agenda, attributing the dispute to people on the mission staff.
The lawsuit marks a proper escalation after months of public sparring between Sun and WLFI, and will check how US courts deal with alleged centralized freeze controls in DeFi ventures.
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The submit Justin Sun Launches Legal Battle Against World Liberty Financial appeared first on BeInCrypto.