- Justin Sun filed a lawsuit in California against World Liberty Financial over frozen WLFI tokens and blocked governance rights.
- The April 15 proposal reset the terms for 62.28 billion locked WLFI tokens held by early supporters and insiders.
- At press time, WLFI price traded near $0.08, up 1.05% in the last 24 hours.
After a tense clash between World Liberty Financial and the TRON DAO founder in recent days, a new battle seems to have been unlocked in the courts. Prior to this, Justin Sun and World Liberty Financial have been exchanging words through their official accounts, but Sun has escalated the matter with a fresh lawsuit challenging the recently introduced governance protocol. This lawsuit comes at a time when WLFI1.35% has pushed back into bullish territory, erasing the over 20% dip
Justin Sun’s California Lawsuit Against World Liberty Financial
According to an official post on X, Justin Sun said he filed a lawsuit in the U.S. District Court for the Central District of California against World Liberty Financial. He said the case seeks to protect his legal rights as a holder of WLFI tokens. Sun also said the project froze his tokens, blocked his votes, and threatened to burn them.
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
Sun said he still supports President Donald Trump and his administration’s crypto policies. However, he accused some members of the World Liberty team of acting against Trump’s values. He wrote, “They wrongfully froze all of my tokens” without proper justification. He also said the freeze deprived him of his right to vote on governance proposals. Sun said he does not believe Trump would condone those actions.
Sun said he tried to resolve the dispute before filing the case. He said the team refused requests to unfreeze his tokens and restore his rights. As a result, he said litigation became his only remaining option. Sun said he wants equal treatment with other early investors. He wrote that he seeks no special treatment under the project. Earlier, World Liberty Financial responded to Justin Sun’s accusations on X by questioning his credibility and accusing him of using “baseless allegations” to deflect from his own conduct. The project also said it has the contracts, the evidence, and the truth regarding the dispute.
WLFI Governance Recap: Key Terms From the Locked Token Proposal
As part of his lawsuit, Sun also attacked a World Liberty Financial governance proposal. On April 15, World Liberty Financial advanced a governance proposal that reset terms for 62.28 billion locked WLFI tokens. The proposal covered early supporter holdings and founder, team, advisor, and partner allocations. It also sets vesting paths, burn terms, voting rules, and default outcomes for holders who decline participation.
The World Liberty Financial proposal placed 17.04 billion locked WLFI tokens under a new early supporter schedule. Under that framework, holders face a two-year cliff and then a two-year linear vest. Tokens begin unlocking after year two and finish distribution by year four.
The proposal stated that early supporter tokens would not face any burn. However, holders must confirm the schedule and finalize all the expected acknowledgments and eligibility checks. If they do not accept, their tokens remain locked, while governance rights remain in place under future proposals.
Founder and Partner Allocations Face Burn and Longer Vesting
The World Liberty Financial governance proposal also talked about 45.24 billion locked WLFI tokens held by founders, team members, advisors, and partners. If all eligible holders opt in, WLFI burns 4.52 billion tokens immediately upon passage. The remaining 40.71 billion tokens then enter a two-year cliff and a three-year linear vest.
The text described this route as the “least favorable unlock terms” in the proposal. It said those holders face a mandatory burn and a longer vesting timeline than early supporters. Holders who decline the terms avoid the burn, yet their tokens stay locked indefinitely and retain governance use. The proposal set a seven-day voting period and a one billion WLFI quorum requirement. It also set a simple majority threshold and a ten-day acceptance window after deployment.
A no vote keeps the current lock terms unchanged without modification. For now, the WLFI price remains under watch following Justin Sun’s lawsuit against World Liberty Financial over token rights and governance access. At press time, the WLFI1.35% price was trading at $0.08, up 1.05% over the last 24 hours. World Liberty Financial has not issued a separate response on the lawsuit itself.
