United

World

Liberty

DeFi

motion

<p>Justin Sun, the founder of the <a href="https://en.coin-turk.com/trx-price-prediction-when-will-tron-become-attractive-for-buying/" rel="noopener noreferrer nofollow">Tron</a> blockchain, has filed a lawsuit against World Liberty Financial, an entity reportedly backed by members of Donald Trump’s family, alleging the company unjustly froze his $45 million in WLFI tokens, made misleading statements, and damaged his reputation. Sun, a well-known Asian entrepreneur in the cryptocurrency space, is recognized for his contributions to the decentralized finance (DeFi) ecosystem. World Liberty, claiming to operate in the DeFi sector, has drawn attention for securing support from relatives of prominent political figures in the United States.</p>
<h2 id="lawsuit-details-and-key-allegations">Lawsuit details and key allegations</h2>
<p>According to the suit filed on Tuesday, Sun claims that the World Liberty team invited him to invest in a new project in 2024, for which he bought $45 million worth of WLFI tokens. The court documents state that World Liberty later asked Sun to make additional investments through 2025 and to help launch the company’s stablecoin, USD1. When Sun declined these requests, tensions reportedly escalated between him and the company’s management.</p>
<p>The complaint alleges World Liberty convinced investors to purchase tokens through incomplete and misleading information. Public statements about economic rights and governance features promised to WLFI holders, Sun argues, were not truthful. Despite having a decentralized façade, the lawsuit underscores that token control remained centralized in the hands of World Liberty’s leadership.</p>
<p>A standout claim in Sun’s lawsuit is that in August 2025, World Liberty secretly embedded a “blacklist” function into the smart contract overseeing WLFI tokens. This change was implemented without seeking investor approval or issuing a public notice, allowing the company to freeze specific wallets and block their ability to conduct transactions.</p>
<h2 id="allegations-of-market-manipulation-and-pressure-tactics">Allegations of market manipulation and pressure tactics</h2>
<p>Sun alleges the token freeze served two purposes: to strong-arm him into minting $200 million worth of the company’s stablecoin on the Tron network, and to artificially prop up the WLFI token’s price by stopping a major investor from selling. By restricting Sun’s ability to sell his stake, World Liberty’s founders and internal reserves retained their market value.</p>
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 <p>“While everyone could see the technical change on the blockchain, the company silently inserted a blacklisting function and never disclosed its existence or consequences to any of the investors,” Sun’s lawsuit asserts.</p>
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<p>The suit also raises regulatory concerns in the US, noting that World Liberty’s centralized authority to mint, freeze, and transfer tokens contradicts its claims of decentralization. These powers, according to the complaint, could subject the company to FinCEN’s money transfer operator regulations.</p>
<p>Court documents reveal that Chase Herro, an executive at World Liberty, issued two explicit threats to Sun. In one, Herro warned the WLFI tokens would be burned if Sun didn’t claim them personally; in another, he threatened to report Sun and his companies to US authorities, alleging insufficient identity documentation.</p>
<h2 id="confidentiality-past-dealings-and-public-response">Confidentiality, past dealings, and public response</h2>
<p>Parts of Sun’s lawsuit have been redacted, and an accompanying motion granted World Liberty’s team the right to argue whether these confidential sections should remain sealed. On social media, Sun emphasized, “I’ve tried to resolve this amicably. I simply want to be treated the same as other early investors—nothing more, nothing less,” highlighting his call for fairness.</p>
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 <p>Sun also made clear his firm opposition to the new governance proposal announced by World Liberty on April 15.</p>
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<p>Following the lawsuit, World Liberty issued a statement saying they would not comment on the matter. Meanwhile, Sun’s visits to the United States have become more frequent, and he recently attended Donald Trump’s inaugural memecoin dinner as an invited guest. Sun also reached a $10 million settlement last month in a separate case with the US Securities and Exchange Commission.</p>
<p>The post <a href="https://en.coin-turk.com/justin-sun-sues-over-45-million-frozen-in-wlfi-tokens/" rel="noopener noreferrer nofollow">Justin Sun sues over $45 million frozen in WLFI tokens</a> appeared first on <a href="https://en.coin-turk.com" rel="noopener noreferrer nofollow">COINTURK NEWS</a>.</p>

Justin Sun sues over $45 million frozen in WLFI tokens

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