Justin Sun Claims He Was Locked Out of His Crypto Investment and Is Now Suing

TLDR

• Tron founder Justin Sun has initiated legal proceedings against World Liberty Financial in a federal court in California.
• Sun alleges WLFI unjustly froze his cryptocurrency tokens, revoked his voting privileges, and made threats to destroy his assets.
• He attempted to address the matter through private channels prior to commencing the lawsuit.
• Sun is against a governance plan that would result in the permanent locking of tokens belonging to holders who do not consent.
• Even with the legal case, Sun affirms his continued support for President Trump and his pro-cryptocurrency agenda.

(SeaPRwire) –   Justin Sun, the founder of Tron, has launched a lawsuit in a California federal court against World Liberty Financial, a cryptocurrency initiative supported by the Trump family.

Sun alleges that the WLFI team improperly locked his tokens, stripped him of his capacity to participate in governance votes, and menaced to destroy his holdings permanently without providing a valid reason.

Today, I filed a lawsuit in California federal court against World Liberty Financial to protect my legal rights as a holder of $WLFI tokens.
 
I have always been—and remain—an ardent supporter of President Trump and his Administration’s efforts to make America crypto friendly.…

— H.E. Justin Sun (@justinsuntron) April 22, 2026

He states that he endeavored to resolve the disagreement privately before resorting to litigation. The WLFI team’s refusal to unlock his tokens, he claims, forced him to pursue legal recourse.

Previously the biggest external investor in World Liberty Financial, Sun has now emerged as its most outspoken critic.

On April 12, Sun accused the WLFI team of incorporating a hidden blacklisting feature within the project’s smart contract. He asserted this feature enables the team to freeze, limit, and essentially seize tokens from investors.

WLFI addressed these accusations on social media, labeling them “baseless allegations” and charging Sun with “playing the victim.” The team suggested potential legal measures, stating: “See you in court pal.”

The Governance Dispute

The rift widened after World Liberty put forward a governance proposal on April 15. This proposal aims to shift more than 62 billion WLFI tokens from open-ended lockups to defined vesting timelines.

According to the plan, tokens belonging to founders, team members, and advisors would be locked for a two-year period, followed by a phased release over the subsequent three years. Approval of the proposal would also trigger a 10% token burn.

Investors who do not agree to the updated conditions would see their tokens locked permanently under the current protocol.

Sun described the proposal as “one of the most absurd governance scams” he has encountered. He contends it was presented as a governance action but operates more as a snare for investors who fail to explicitly consent.

Since his tokens are frozen, Sun states he is completely unable to cast a vote on the proposal—whether in favor or opposition.

Sun Still Backs Trump Despite Legal Fight

Sun emphasized in his communications that the legal action does not indicate any shift in his support for President Trump or his administration.

“Unfortunately, certain individuals on the World Liberty project team have been operating the project in a manner that goes against President Trump’s values,” Sun wrote.

Sun is considered one of the biggest owners of the TRUMP memecoin. This investment led to an invitation to a cryptocurrency gala dinner in May 2025, where he was presented with a watch.

Information from the analytics service CoinCarp indicates there are 642,882 holders of the TRUMP memecoin. More than 91% of the total supply is controlled by the ten largest wallets.

World Liberty Financial did not provide a statement regarding the lawsuit when reached by the press.