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Tron founder Justin Sun has filed a lawsuit in California against World Liberty Financial, seeking to compel the unfreezing of $45 million worth of WLFI tokens that he says have been locked since an update to the project’s smart contracts.
According to the complaint, Sun attempted to resolve the matter privately, but the dispute escalated after his tokens remained frozen while other token holders retained liquidity. The case was filed in California court last week and names breach of contract, unjust enrichment, fraudulent misrepresentation, and conversion among the central claims.
Sun’s filing describes a dispute over how WLFI handled his holdings after he participated in the project’s early token sale. He alleges that WLFI and individuals involved with the project used his frozen tokens to pressure him into additional funding.
The complaint also points to WLFI’s use of the “Trump” brand as a fundraising driver, arguing that the project’s operators exploited that association to raise money from investors. Sun says he became entangled in the situation after he did not comply with what he characterizes as the project’s demands.
A key element of the lawsuit involves what the filing refers to as a “blacklisting smart contract update.” Sun alleges WLFI pushed the update without informing him or other token holders, and that once it went live, he was unable to participate in governance.
Sun says he is effectively sidelined from voting on proposals that could affect the value and control of his stake, including proposals that he claims could result in his tokens being burned. He argues that the inability to vote leaves him unable to protect his position while other investors can weigh in on company decisions.
Sun’s legal team is also seeking a restraining order to stop WLFI from seizing or destroying his tokens. The filing argues that without immediate court protection, governance actions could theoretically eliminate his stake before the lawsuit is resolved.
Sun’s complaint states that this would cause irreparable harm, which is cited as the legal basis for seeking expedited relief.
Sameer Group LLC, which invested $25 million into WLFI’s presale, has offered to help broker a settlement. The company’s CEO, Syed Sameer, said he is prepared to bring in institutional partners from the UAE to help unlock Sun’s tokens and avoid a prolonged court fight.
Sameer’s comments suggest concern that litigation could drag on for months or years, consuming resources and attention that could otherwise be directed toward building the project. Whether WLFI will engage with the mediation offer remains unclear, as the company has not issued a formal response in the material provided, and Sun’s legal team did not indicate whether mediation is being considered at this stage.
Sun’s filing also references public statements by WLFI that he says accused him of theft and misappropriation. The documents indicate these allegations are separate from the main lawsuit, but Sun’s lawyers suggest further legal action could follow if WLFI does not retract or back away from those claims.
Sun’s complaint frames the reputational harm as a concern alongside the token freeze, seeking relief that addresses both his holdings and his standing.
World Liberty Financial is described in the complaint as having close ties to the Trump family. The filing states that Donald Trump serves as WLFI’s “chief crypto advocate,” with Eric and Donald Jr. listed as co-founders, and Barron Trump also described as having a role in the project.
Sun’s lawsuit is therefore described as politically sensitive given his public support for Trump’s crypto policies. In a statement included in the material, Sun said the lawsuit does not change his views on the president or the administration’s approach to digital assets.
Sun’s complaint also characterizes the Trump brand as WLFI’s main asset, alleging the company exploited that association to raise money from investors. The governance blacklist allegation, if proven, could also prompt broader concerns among other token holders about how governance updates are handled and whether similar restrictions could be applied to them.
Beyond governance and token access, Sun’s filing includes an extortion-related theory. He alleges WLFI tried to force him to inject more capital into the company by holding his existing tokens hostage.
The complaint does not specify the amount of additional investment WLFI sought, but Sun argues that the conduct reflects bad-faith dealing. He suggests that if he proves the claim in court, it could expose WLFI to punitive damages.
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