Justin Sun Wins Public Hearing in WLFI Token Dispute
Tron founder Justin Sun is pursuing claims worth hundreds of millions of dollars against World Liberty Financial, the cryptocurrency venture backed by U.S. President Donald Trump’s family. Sun says 2.94 billion WLFI tokens were frozen after he invested a total of $75 million in the project. The dispute has become a test of the control crypto issuers can exercise over investors’ holdings and the legal protections available when token access is restricted.
In its latest ruling, a California court held that Sun’s personal claims must be heard in open court, rejecting WLFI’s attempt to move the entire dispute into confidential arbitration. The decision allows a key part of the case to proceed publicly, marking a procedural advance for Sun. He has also warned that USD1, a stablecoin associated with WLFI, includes centralized freezing controls, potentially broadening scrutiny of the project’s asset-control mechanisms.
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The history behind this eventTRON Founder Justin Sun Sues Trump Family-Backed World Liberty Financial
World Liberty Financial is a cryptocurrency venture co-founded by the Trump family that issues the $WLFI governance token and USD1 dollar-backed stablecoin. TRON founder Justin Sun spent $45 million to acquire 3 billion $WLFI tokens in 2024 and 2025 and received another 1 billion tokens for serving as an adviser, making him the venture's largest investor at the time. The dispute also highlights the risks surrounding token governance and control of digital assets.
Sun sued World Liberty Financial in federal court in California on April 21, 2026, alleging that it had unlawfully frozen his 4 billion $WLFI tokens since September 2025. The tokens were worth about $320 million when the lawsuit was filed. He also alleged that the company pressured him to buy $200 million of USD1 and invest in its parent company, then threatened to destroy his tokens after he refused. On May 4, WLFI filed counterclaims against Sun in Florida, accusing him of defamation, unauthorized token transfers and short-selling the token. Sun denied the allegations.
Justin Sun Blasts Trump-Linked WLFI’s ‘Absurd’ Governance Vote as Feud Escalates
World Liberty Financial, or WLFI, is a decentralized finance project co-founded by the Trump family, with its WLFI token used primarily for governance. TRON founder Justin Sun invested $45 million from 2024 to 2025 to buy 3 billion tokens and received another 1 billion tokens in his capacity as an adviser. The dispute over his assets and voting rights has implications for major investors’ interests and the credibility of the project’s governance.
Around April 15, 2026, WLFI proposed an unlock plan covering 62.3 billion tokens. Early backers would have to accept a two-year lockup followed by two years of linear unlocking or remain locked indefinitely. A separate allocation of 45.2 billion tokens for the team and others would also be subject to a 10% burn. Sun called the plan “absurd” and said opponents could be stripped of their voting rights. WLFI said the proposal was intended to support long-term development, while Sun filed a lawsuit in a California federal court on April 21.
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