Justin Sun is taking his feud with World Liberty Financial to court, escalating his dispute into a full-blown legal battle over token control and investor rights.
• Freeze Lawsuit: Blockchain billionaire Justin Sun has filed suit in California federal court, alleging that the Trump-backed World Liberty Financial project wrongfully froze his tokens and blocked his participation in governance. Sun claims the team removed his ability to vote on proposals while threatening to permanently burn his holdings without justification. "They wrongfully froze all of my tokens, stripped me of my right to vote on governance proposals, and have threatened to permanently destroy my tokens by 'burning' them – all without any proper justification," Sun wrote in a post to X.
• Prior Grievances: Earlier this month, World Liberty Financial was thrust into the spotlight after executing a series of massive borrows against its governance token holdings through onchain lending market Dolomite. Justin Sun subsequently rebuked World Liberty Financial for a separate matter, voicing disdain for the WLFI token’s “backdoor blacklisting function,” which gives its issuer, “unilateral power to freeze, restrict, and effectively confiscate the property rights of any token holder, without notice, without cause, and without recourse.”
• Trump Card: Eric Trump – Executive Vice President of The Trump Organization and a key World Liberty Financial promoter – rebuttled with an ad hominem attack against Sun, responding, "The only thing more ridiculous than this lawsuit is spending $6 million on a banana duct-taped to a wall. We are incredibly proud of the World Liberty Financial team."