Justin Sun took World Freedom Financial to federal court
Tron founder Justin Sun has filed a lawsuit against World Freedom Financial (WLFI) in California federal court.
The complaint alleges that the Decentralized Finance (DeFi) project fraudulently induced investors to invest, blocked its tokens, and threatened to destroy them permanently.
Justin Sun's story with World Freedom Financial
According to BeinCrypto's earlier report, Sun has invested $30 million in World Liberty Financial ahead of the token market launch in late 2024. He subsequently built a $75 million WMFI site and was named as a consultant on the project.
In September, Global Freedom Financial confirmed that it had blacklisted the wallet. The wallet contains 540 million unlocked WLFI tokens and 2.4 billion locked tokens. Activity on the chain followed, showing spending transfers, including an estimated $9 million.
Since then, the value of Sun's locked-in stash has fallen by roughly $60 million amid a sharp slide in WLFI's price. For its part, the WWF said the ban was not a measure specifically aimed at solar, but a routine safety measure.
Earlier this month, Sun alleged that the Trump-backed venture included a “backdoor blacklisting functionality” that allowed it to block, restrict and strip “the property rights of any token holder.” In response to the public lawsuit, World Liberty Financial tried to get the investor to fight back.
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Tron's founder sued World Freedom Financial
In a recent post, Sun said he made good faith attempts to work things out with the World Liberation Front without going to court.
But the group said it rejected its request to settle the tokens and reclaim its ownership, leaving litigation as its remaining option.
“They wrongfully blocked all my tokens, stripped me of my right to vote on management proposals, and threatened to ‘burn' my tokens permanently – all for no real reason. I don't believe President Trump would support these actions if he found out about them,” he said. “I just want to be treated the same as the previous investors who received the token – no better, no worse.”
In the filing, Sun and its affiliates accuse Global Freedom Financial of breach of contract, fraud and misrepresentation. The plaintiffs asked the court to correct the alleged wrongdoing and stop the violation of the rights of the world freedom.
Tron founder World Liberty Financial is asking the court to release the WLFI tokens, pay damages to lawsuits, and refrain from burning, destroying or otherwise disrupting its holdings.
Sun said he still supports President Trump and his administration's crypto-friendly agenda, citing disagreements with individuals on the project team.
The lawsuit marks a formal development after months of public wrangling between Sun and WFI, and could test how U.S. courts handle centralized spending controls in DeFi ventures.
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