- Justin Sun says he has sued World Liberty Financial in federal court
- He claims the project froze his WLFI tokens without justification
- Sun also says he was blocked from governance voting
- The dispute adds to an already public feud between both sides
Sun Escalates Dispute Into a Lawsuit
Tron founder Justin Sun says he has filed a lawsuit against World Liberty Financial, taking their ongoing conflict into court.
According to Sun, the project froze all of his WLFI tokens, removed his ability to vote on governance proposals, and threatened to burn the tokens. He argues that these actions were taken without proper justification and that the team refused to reverse them.
Fight Over Token Rights and Governance
At the center of the case is the question of what rights token holders actually have. Sun says he is not asking for special treatment, only to be treated like other early investors.
He argues that freezing his tokens while also excluding him from governance goes against the basic idea of token-based participation. In his view, the project has used control features inside the smart contract in a way that unfairly limits investor rights.
Tensions Grew Around New Proposal
The conflict intensified after World Liberty introduced a proposal to convert a large amount of WLFI tokens from indefinite lockups into fixed vesting schedules.
Sun strongly criticized that plan, saying it was being presented as governance while in reality forcing investors into harsh conditions. He especially objected to the structure for early buyers, which he said could leave some tokens locked for years or indefinitely.
A Bigger Test for Crypto Governance
This fight is about more than one investor dispute. It also raises broader questions about token freezes, blacklisting powers, and how much control project teams should have over supposedly decentralized systems.
World Liberty has declined to comment on the lawsuit, but the case could become an important example of how courts handle governance disputes in crypto.
