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Justin Sun Sues Trump-Linked World Liberty Financial Over Alleged Token Freeze

The case tests whether a project marketed as decentralized can lawfully keep undisclosed powers to freeze or destroy investors’ tokens.

Overview

  • Sun, who filed a federal complaint Tuesday in the Northern District of California, alleges World Liberty Financial froze his WLFI tokens and threatened to burn them.
  • He says developers quietly added a hidden blacklist tool to the WLFI smart contract in August 2025 and then used it in September to lock his wallet without a vote or disclosure.
  • Sun says he bought about $45 million of WLFI and received an adviser grant that made him a major holder, and the token now trades near $0.08 after a steep drop since September.
  • A governance proposal published April 15 would swap indefinite lockups for vesting and leave non‑accepting holders stuck under old terms, and Sun says the freeze blocks him from voting.
  • World Liberty rejects the claims as meritless and accuses Sun of misconduct, and the dispute sits at the complaint stage with no court ruling or regulatory action announced.