Today, Justin Sun announced he has filed a federal lawsuit in California against the World Liberty Financial team.
Key allegations:
- They froze his $WLFI tokens without proper justification
- Stripped him of voting rights on governance proposals
- Threatened to permanently “burn” his tokens
Sun emphasizes he remains a strong supporter of President Trump and the administration’s pro-crypto efforts, but believes the project team’s actions violate basic token holder rights and principles of fairness in crypto.
He also strongly opposes the new governance proposal published on April 15, which includes token burns and long vesting periods.
This is a major internal conflict within the Trump-backed WLFI project.
Do you agree with WLFI’s actions against its own holders?

WLFI-2.72%

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SudoSmiles

· 13h ago

Brother Sun, this wave of lawsuits has essentially torn off the veil of on-chain governance: governance is not about banning whoever you want.

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MoonlightTake-ProfitLine

· 22h ago

If there truly is a violation, the project team should follow a transparent penalty process rather than threatening to burn tokens directly, which resembles centralized black-box operations.

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MirrorPetals

· 04-22 05:24

Freezing assets without a valid reason is a major taboo in Web3.

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GlassDomeObservatory

· 04-22 04:51

Support judicial resolution, but it is even better to make on-chain evidence and governance records fully public so that everyone can judge for themselves who is shifting blame.

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GateUser-14d03834

· 04-22 04:47

I am more concerned about whether the contract has freeze permissions. If the administrator can freeze at will, then "decentralization" is just a marketing term.

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PerpColdHands

· 04-22 04:46

Could WLFI also believe that he has risks of market manipulation or similar issues? But what about the evidence? Announcements shouldn't just state positions; they need to present facts.

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IOnlyTrustOn-ChainData.

· 04-22 04:43

In the proposal, there's both burning and locking, which looks like trying to find a way out of circulation pressure. But in the end, are large holders being suppressed first?

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GateUser-bfa82bb2

· 04-22 04:39

https://www.gate.com/campaigns/4608?ref=VFFABLWJUQ&ref_type=132

Reply0

StrollingOnTheEdgeOfTheDao

· 04-22 04:39

The Trump concept rally has reached this point, indicating that no matter how strong the narrative is, it can't stop the rotten governance structure.

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ColdBrewYield

· 04-22 04:37

The internal disputes within the project have escalated to the court, and subsequent fundraising and community trust are basically going to be compromised.

View OriginalReply0

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🚨 Justin Sun Files Lawsuit Against World Liberty Financial (WLFI)

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