Justin Sun sues World Liberty Financial over token lockup

Sun said the lawsuit is to protect his rights as a WLFI token holder and doesn't change his support of US President Donald Trump and his administration’s efforts to make the US crypto-friendly.

Tron founder Justin Sun said he is suing Trump-family-backed World Liberty Financial for allegedly freezing his tokens and threatening to burn them “without any proper justification.” 

In a post to social media on Wednesday, Sun said the suit, filed in a California federal court, was meant to protect his rights as a token holder.

“I have tried in good faith to resolve this situation with the World Liberty project team without resorting to litigation. But the project team has refused my requests to unfreeze my tokens and restore my rights as a token holder. They have left me with no choice but to turn to the courts,” he added.

Sun is the largest individual investor in World Liberty, a project tied closely to the Trump family.

Sun previously threatened legal action earlier this month over lengthy lockup periods for WLFI’s governance token and accused WLFI’s recent governance proposal of lacking transparency, saying more than 76% of the voting tokens came from 10 wallets.

Related: World Liberty burns 47M tokens in bid to pump price as slide continues

At the time, the WLFI project team said on X that the claims were “baseless allegations” and added, “We have the contracts. We have the evidence. We have the truth. See you in court pal.”

Cointelegraph has contacted the Tron and World Liberty Financial teams for additional comment about the lawsuit. 

Meanwhile, Sun said on X that the lawsuit doesn't change his views on President Donald Trump or his administration. 

“Unfortunately, certain individuals on the World Liberty project team have been operating the project in a manner that goes against President Trump’s values,” Sun said.

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Source: CoinTelegraph