Donald Trump-backed WLFI faces lawsuits from top supporter Justin Sun over token rights

• Justin Sun filed a lawsuit against World Liberty Financial in a California federal court.
• The lawsuit stems from Sun's recent fallout with the project team over his frozen WLFI tokens and litigation threats.
• Sun seeks a court order requiring WLFI to unfreeze his tokens, award damages and prevent their burning.

Tron founder Justin Sun is suing Donald Trump-backed World Liberty Financial (WLFI) over recent events between him and the project's team.

Sun filed the lawsuit in a California federal court, aiming to protect his legal rights as a WLFI token holder.

"All I want is to be treated the same as every other early investor who received tokens — no better, no worse," Sun wrote in a Wednesday X post.

Sun accuses WLFI of token freeze and voting restrictions amid new governance proposal

Sun's complaint alleges multiple causes of action, including a breach of contract, fraud in the inducement, conversion, unjust enrichment and declaratory relief. The conflict began when WLFI allegedly froze Sun's substantial token holdings and threatened to burn them permanently.

"They wrongfully froze all of my tokens, stripped me of my right to vote on governance proposals, and have threatened to permanently destroy my tokens by 'burning' them — all without any proper justification," he stated.

Sun, who is WLFI's largest investor, made his initial investment in November 2024, committing $30 million in exchange for 2 billion WLFI tokens, after which he was named an advisor to the project. 

He added $15 million in January 2025 to purchase 1 billion tokens, bringing his total cash investment to $45 million. Following his investments, WLFI's total fundraising surged to approximately $550 million, a 2,400% increase from pre-investment levels, according to the filing.

Sun claims he has attempted to resolve the issue with the team, but has faced a brick wall. "The project team has refused my requests to unfreeze my tokens and restore my rights as a token holder. They have left me with no choice but to turn to the courts," he noted.

He further criticized a new governance proposal published by World Liberty Financial last week, which would impose vesting schedules and token burns on non-accepting holders, noting that his frozen tokens prevent him from voting against it.

"This proposal is bad for the community, but because World Liberty has frozen my early investor tokens, I cannot vote them for or against the proposal," Sun added.

Sun is seeking a court order requiring World Liberty Financial to immediately unfreeze his tokens, award damages to be determined at trial and prevent the firm from burning or interfering with his holdings.

He added that the suit does not change his views about President Donald Trump or his administration.