- Justin Sun filed a lawsuit in California against World Liberty Financial over frozen WLFI tokens and blocked management rights.
- The April 15 proposal resets the terms for 62.28 billion locked WLFI tokens held by early backers and insiders.
- At press time, WLFI’s price is trading near $0.08, up 1.05% in the past 24 hours.
After a tense clash between World Liberty Financial and the founder of TRON DAO in recent days, a new battle appears to have been opened in the courts. Before that, Justin Sun and World Liberty Financial had been exchanging words through their official accounts, but Sun has escalated the matter with a new lawsuit challenging the recently introduced governance protocol. This lawsuit comes at a time WLFI1.35% The pair has returned to bullish territory, erasing the decline of more than 20%
Justin Sun’s lawsuit in California against World Liberty Financial
According to an official post on X, Justin Sun said he has filed a lawsuit in the US District Court for the Central District of California against World Liberty Financial. He said the case seeks to protect his legal rights as a WLFI token holder. Sun also said the project froze its tokens, blocked its votes, and threatened to burn it.
Today I filed a lawsuit in federal court in California against World Liberty Financial to protect my legal rights as a holder $ Wolfie Symbols.
I have always been and continue to be an ardent supporter of President Trump and his administration’s efforts to make America crypto-friendly.
– His Excellency Justin Sun 👨‍🚀 🌞 (@justinsuntron) April 22, 2026
Sun said he still supports the cryptocurrency policies of President Donald Trump and his administration. However, some members of the Global Freedom Team have been accused of acting against Trump’s values. He wrote: “They wrongly froze all my tokens” without proper justification. He also said that the freeze deprived him of his right to vote on governance proposals. Son said he did not think Trump would condone such actions.
Son said he tried to resolve the dispute before filing the case. He said that the team rejected requests to unfreeze its codes and restore its 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 was not seeking special treatment under the project. Earlier, World Liberty Financial He responded Justin Sun accused X by questioning his credibility and accusing him of using “baseless allegations” to get away with his behavior. The project also said it had the contracts, evidence and the truth about the dispute.
WLFI Governance Recap: Key Terms from the Locked Token Proposal
As part of his lawsuit, Sun also attacked the global financial governance proposal. On April 15, World Liberty Financial filed Governance proposal Which resets the conditions for 62.28 billion locked WLFI tokens. The proposal covered early backer holdings and founder, team, advisor and partner allocations. It also specifies vesting paths, burn conditions, voting rules, and default outcomes for shareholders who decline to participate.
World Liberty Financial’s proposal places 17.04 billion WLFI tokens locked under a new early support schedule. Under this framework, bondholders face a two-year ramp and then a two-year linear jacket. Token unlocking begins after year 2 and distribution ends by year 4.
The proposal states that early backers’ tokens will not face any burning. However, holders must confirm the timeline and finalize all expected returns 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-in and longer vesting
The global governance proposal for financial freedom also talked about 45.24 billion locked WLFI codes Maintained by founders, team members, advisors and partners. If all eligible owners opt in, WLFI will burn 4.52 billion tokens immediately after passing. The remaining 40.71 billion tokens then enter a two-year ramp and a three-year linear jacket.
The text described this path as the “least favorable opening conditions” in the proposal. These holders face mandatory cremation and a longer vesting timeline than early backers, she said. Owners who reject the terms avoid burning, yet their tokens remain locked indefinitely and retain management use. The proposal established a seven-day voting period and a $1 billion WLFI quorum requirement. It also sets a simple majority threshold and an acceptance window of ten days after publication.
A no vote leaves the current lock conditions unchanged without modification. Currently, the price of WLFI remains under surveillance following the lawsuit filed by Justin Sun against World Liberty Financial over token rights and management access. At press time, WLFI1.35% The price was trading at $0.08, up 1.05% in the past 24 hours. World Liberty Financial did not issue a separate response to the lawsuit itself.
