Justin Sun Sues Trump's World Liberty Financial Over Frozen Tokens

CryptoFrontier
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Tron (TRX) founder Justin Sun filed a lawsuit against World Liberty Financial (WLFI), a cryptocurrency project supported by US President Donald Trump, alleging that the WLFI project team froze his tokens without valid reason and stripped him of voting rights. The lawsuit was filed in California federal court, and tensions between Sun and the Trump-backed project have escalated following public statements from Eric Trump, Donald Trump’s second son.

Eric Trump’s Response

Eric Trump, WLFI co-founder, responded to Sun’s lawsuit by comparing it to what he described as an absurd purchase. Trump stated that Sun’s lawsuit was as ridiculous as “paying $6 million for a banana taped to a wall.” His comments underscored the WLFI team’s dismissal of the legal action.

WLFI’s Position

The WLFI team rejected Sun’s case as baseless, characterizing it as a “desperate” attempt at public sabotage. While the team accused Sun of unspecified irregularities, no specific details regarding these allegations were provided.

Sun’s Allegations

According to the lawsuit, Justin Sun alleges that World Liberty Financial took three specific actions against him: freezing his tokens without valid justification, stripping him of his voting rights in governance proposals, and threatening to permanently burn his tokens.

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CryptoFrontier4h ago
Comment
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NonceNomadvip
· 1h ago
This melon is a bit big, freezing tokens still deprives voting rights?
View OriginalReply0
L2Mailmanvip
· 1h ago
TRX here isn't exactly a friendly party, but freezing someone else's voting rights is indeed unseemly.
View OriginalReply0
GateUser-9076f8b9vip
· 1h ago
If true, WLFI's governance design is a ticking time bomb: whoever controls the contract permissions is the king.
View OriginalReply0
BluePeonyPrincipalProtectionvip
· 1h ago
If freezing assets without proper justification, it feels like a typical power struggle over governance rights.
View OriginalReply0
GateUser-bee672a5vip
· 1h ago
I'm more concerned: how exactly is on-chain voting power "deprived"? Is it due to multi-signature changes or are snapshots excluded?
View OriginalReply0
GateUser-4aa73916vip
· 2h ago
Politics + crypto + litigation, the three-piece set, the market is about to be driven by emotions again.
View OriginalReply0
PixelMetaverseRaccoonvip
· 2h ago
After the California court accepts the case, the disclosure documents could be very exciting; stay tuned for the details.
View OriginalReply0
GateUser-72e48736vip
· 2h ago
It's terrifying when project teams arbitrarily freeze assets; this is the classic problem of centralized custody.
View OriginalReply0
Tangerine-FlavoredPullbackvip
· 2h ago
Whether to pursue a subsequent settlement or to stand firm, losing on either side could trigger a wave of trust crisis.
View OriginalReply0
OldKeycapTradervip
· 2h ago
No matter which side you're on, this is a reminder: voting rights and token ownership are not necessarily linked; don't assume they are.
View OriginalReply0
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