Update: April 22, 6:40 am UTC: This article has been updated to include more information on Justin Sun and World Liberty Financial.
Tron founder Justin Sun announced he has filed a lawsuit in a U.S. federal court in California against World Liberty Financial (WLFI), alleging the project froze his tokens and threatened to burn them “without any proper justification.” Sun said the suit seeks to protect his rights as a token holder after attempts to resolve the dispute with the WLFI team failed.
Sun posted that he had tried in good faith to get WLFI to unfreeze his tokens and restore his voting rights, but was left with “no choice but to turn to the courts.” He had previously warned of legal action over lengthy lockup terms for WLFI’s governance token and criticized a recent governance proposal for lacking transparency, noting that 76% of voting tokens came from 10 wallets.
WLFI responded on social media earlier, calling Sun’s claims “baseless allegations” and saying, “We have the contracts. We have the evidence. We have the truth. See you in court.”
The contested April 15 governance proposal would re-lock founders’, team members’, and advisors’ tokens for two years, then release them gradually over three years, and impose a 10% burn on advisor tokens if passed. WLFI says holders who do not accept the new schedule remain locked under the existing terms. Sun argued the proposal harms the community because token holders who do not affirmatively accept its terms would have their tokens locked indefinitely — and he cannot vote because his early investor tokens are frozen.
Sun said the lawsuit does not change his political views; he remains a supporter of U.S. President Donald Trump and said some WLFI individuals have operated contrary to Trump’s values. Sun is also believed to be among the largest holders of the TRUMP memecoin, a position that earned him an invitation to a crypto gala dinner in May 2025 and a commemorative watch. Crypto analytics site CoinCarp lists 642,882 TRUMP holders, with over 91% of supply concentrated in the top 10 wallets and over 97% in the top 100.
Cointelegraph has reached out to Tron and World Liberty Financial for comment.
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