Crypto entrepreneur Justin Sun has filed a lawsuit against World Liberty Financial, escalating a high-profile dispute over control and rights tied to the WLFI token.
According to a Reuters report, the case has been filed in a U.S. federal court in California, where Sun alleges that the company illegally froze his token holdings and restricted his ability to sell them.
Sun claims the firm embedded mechanisms within its token contracts that allowed it to block transactions and effectively lock up investor assets. The lawsuit further alleges that the company threatened to permanently delete, or “burn,” his holdings, which are estimated to be worth hundreds of millions of dollars.
The dispute centers on WLFI tokens, part of a broader crypto venture associated with Donald Trump and his family. Sun, one of the project’s largest investors, had purchased tens of millions of dollars worth of tokens and claims he was unable to participate in governance decisions after his holdings were frozen.
In response, World Liberty Financial has rejected the allegations, describing them as baseless and stating that its actions were taken to protect the platform. The company has also accused Sun of misconduct, signaling a widening rift between the investor and the firm.
The legal battle highlights broader concerns around transparency and governance in the rapidly evolving crypto sector, particularly in decentralized finance projects where control mechanisms may not always be clearly understood by investors.
The case also underscores growing scrutiny of high-profile crypto ventures linked to political figures, as regulators and market participants increasingly focus on accountability and investor protection.
