Justin Sun has filed a lawsuit against World Liberty Financial, alleging the platform froze his tokens and threatened to burn them without justification.
The case, lodged in a California federal court, centres on Sun’s claim that his rights as a WLFI token holder were violated after efforts to resolve the issue privately failed.
“I have tried in good faith to resolve this situation with the World Liberty project team without resorting to litigation… They have left me with no choice but to turn to the courts,”
Sun said.
Sun, the largest individual investor in the project, previously raised concerns about long token lockups and governance transparency, noting that more than 76% of voting power was concentrated in 10 wallets.
World Liberty Financial has rejected the claims, calling them “baseless allegations” and stating it is prepared to defend its position in court.
The dispute adds pressure to the Trump-linked project, with Sun maintaining that the lawsuit does not alter his support for Donald Trump or his administration’s pro-crypto stance.
The legal battle highlights broader risks around token governance, investor rights and transparency in emerging crypto projects.
At the time of reporting, World Liberty Financial price was $0.07999.