Key Takeaways:
Justin Sun filed a California federal lawsuit against WLFI on April 22 over $75 million in frozen tokens. Sun alleges an undisclosed smart contract function was used to freeze his 2.9 billion WLFI token position. World Liberty Financial maintains the token freeze was a routine security measure, not targeted at Sun. Major Investment Turns Into Federal DisputeBy early 2025, Sun had built his WLFI position to approximately $75 million. The relationship began to unravel in September 2025 when World Liberty Financial froze his wallet, which held 540 million unlocked WLFI tokens and 2.4 billion locked tokens.
The Complaint and What Sun Is SeekingSun announced the filing directly on X, stating: “Today, I filed a lawsuit in California federal court against World Liberty Financial to protect my legal rights as a holder of WLFI tokens. I have always been, and remain, an ardent supporter of the project.”
WLFI’s Position and the Broader StakesWorld Liberty Financial has maintained that the wallet freeze was a routine security measure applied to hundreds of wallets, not a move directed specifically at Sun. The project has not acknowledged any obligation to unfreeze the tokens.
