Crypto entrepreneur Justin Sun said he had filed a lawsuit against World Liberty Financial, alleging that the project improperly froze his tokens and stripped him of his governance rights.
Sun detailed the move in a new post about X.
“Today I filed a lawsuit in federal court in California against World Liberty Financial to protect my legal rights as a WLFI token holder.”
According to Sun, the conflict stems from actions taken by individuals involved in the project.
“They unfairly froze all my tokens, stripped me of my right to vote on governance proposals, and threatened to permanently destroy my tokens by ‘burning’ them without proper justification…
I made a good-faith effort to resolve this situation, but… The project team denied my request… “I had no choice but to go to court.”
Sun said the controversy did not reflect a change in his political stance.
“I have always been and will continue to be a passionate supporter of President Trump and his administration’s efforts to make America cryptocurrency-friendly. This lawsuit does not change my opinion of President Trump or his administration.”
The dispute also extends to the governance proposal announced on April 15, which Sun says is detrimental to token holders.
He believes the proposal could impose strict vesting schedules and indefinitely lock-up tokens for those who do not explicitly accept the terms.
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