Justin Sun Sues Trump-Backed Crypto Venture Over Frozen Tokens

Justin Sun, a prominent figure in the crypto space, has filed a lawsuit against World Liberty Financial (WLFI), a Trump-backed crypto venture. The lawsuit was filed in California federal court and targets the freezing of WLFI tokens and voting restrictions imposed on Sun.

The dispute centers around an April 15 governance proposal that would have kept 80% of early investor tokens from trading until 2030, using a two-year cliff followed by a two-year vesting schedule. The proposal also included a 10% burn tied to adviser holdings, which added pressure on early backers who opposed the plan.

Sun claimed that WLFI froze all his tokens, revoked his voting rights, and left him unable to participate in governance decisions related to the project. He argued that the structure of the proposal punished dissenting holders and blocked fair participation in governance.