Will Sun Ge also get rug-pulled? Sun Yuchen angrily sues Trump over WLF: the tokens he bought with a lot of money were maliciously frozen!

Tron founder Justin Sun officially sues Trump family-backed crypto project World Liberty Financial, accusing it of maliciously freezing tokens worth approximately $100 million of $WLFI and threatening to destroy them.

In the cryptocurrency market, even major whales who invest heavily can face the risk of being “harvested” by project teams. Justin Sun, founder of the Tron blockchain, has filed a lawsuit against the Trump family-endorsed cryptocurrency project World Liberty Financial, alleging that the project maliciously froze his $WLFI tokens, and is also suspected of making fraudulent false statements, even threatening him personally and defaming him.

Banking on Trump’s fame, pouring in $45 million, but ending up as a sitting duck

Behind this lawsuit lies intense political and commercial interests. The complaint specifically mentions Sun Yuchen’s support for Trump himself, and accuses senior executives of World Liberty Financial of planning an “illegal asset seizure conspiracy” to usurp a large amount of tokens held by Sun Yuchen. Sun states that these tokens were purchased after being persuaded by the World Liberty Financial team in 2024. The complaint states:

At a critical moment in the development of World Liberty Financial, Mr. Sun invested $45 million to buy $WLFI tokens. This was not only because the project claimed it would promote the adoption of DeFi — which is a core principle Sun has dedicated his life to — but also because he valued the deep connection between the Trump family and the project.

Regarding this lawsuit, a spokesperson for World Liberty Financial only said, “No comment.”

Failed attempt to promote their own stablecoin, relationship rapidly deteriorates

The rupture between the two parties was triggered by subsequent investment pressure. The complaint reveals that World Liberty Financial demanded Sun Yuchen continue to increase his investment in 2025, even explicitly requiring him to issue World Liberty Financial’s USD1 stablecoin on the Tron chain. However, “by July 2025, when World Liberty Financial found that Mr. Sun was unwilling to invest or issue USD1 under their conditions, the officials of World Liberty Financial began to harbor hostility toward Mr. Sun.”

Sun Yuchen’s legal team pointed out that World Liberty Financial had set a trap from the start, concealing and making false statements to mislead investors into believing that purchasing $WLFI tokens would grant corresponding economic and governance rights, thereby inducing Sun Yuchen to invest.

These so-called fraudulent statements include claims about token holder rights, various public statements by World Liberty Financial or its executives regarding governance rights, and statements about “free trading.”

Fake decentralization or true centralization?

Sun Yuchen further revealed in the lawsuit that although World Liberty claims to be a decentralized finance (DeFi) project externally, in reality, it holds extremely centralized control over the tokens.

The complaint states that in August 2025, World Liberty Financial secretly modified the $WLFI token’s smart contract, adding a “blacklist” feature that allows the company to freeze tokens in specific wallets at will. Shockingly, this major modification was never put to a community vote nor disclosed to investors; at the same time, token holders had just voted to allow some tokens to be freely traded.

Although this upgrade was publicly visible on the blockchain, World Liberty Financial deliberately buried it in the code without alerting token holders to its existence or potential impact. In this way, the company created a “blacklist” feature that could be used at will in the dark.

Two main purposes for freezing Sun Yuchen’s tokens?

The complaint alleges that World Liberty Financial froze Sun Yuchen’s tokens for two reasons: first, to threaten him into issuing $200 million USD1 stablecoins on the Tron chain; second, to manipulate the $WLFI price by preventing whales from selling.

The complaint claims that the malicious freezing of Sun Yuchen’s tokens by World Liberty Financial is essentially “artificially supporting the market,” so that the project founders and the company’s treasury tokens can maintain high prices.

It also states that the power to freely issue, freeze, or redistribute tokens not only contradicts the concept of decentralization but could also trigger regulatory issues, potentially causing World Liberty Financial to be classified as a “money transmitter” by the U.S. Financial Crimes Enforcement Network (FinCEN), requiring registration and anti-money laundering (AML) compliance.

The complaint also records two public threats issued by World Liberty Financial against Sun Yuchen and his company. It is alleged that Chase Herro, co-founder of World Liberty Financial, threatened that if Sun Yuchen did not “voluntarily” request the destruction of his $WLFI tokens, he would forcibly destroy them himself.

Additionally, Chase Herro falsely accused Sun Yuchen’s team of submitting KYC documents that did not meet regulations and threatened to report him to U.S. authorities.

Much of the content in the complaint has been redacted. According to attached explanations, this is because Sun Yuchen’s team is complying with confidentiality clauses, giving World Liberty Financial time to decide whether to keep these sensitive details sealed. Sun Yuchen himself expressed on social platform X that he “has shown the utmost sincerity in trying to resolve this dispute.”

Governance dispute intensifies

Last week, World Liberty Financial issued a proposal to change 62.2 billion $WLFI tokens from “indefinite lock-up” to a “staged unlock” mechanism, stating that if holders do not accept the proposal, their tokens will remain locked indefinitely.

In response, Sun Yuchen posted a strong critique last week:

This is not community governance at all! They packaged this proposal as “building consensus” and “long-term commitment,” but peeling back this false veneer, this is the most absurd governance scam I’ve seen.

In a Tuesday post, Sun Yuchen reiterated his strong opposition to the proposal:

For early supporters’ tokens, this proposal imposes a 2-year lock-up period, followed by a 2-year linear unlock — and I want to emphasize again, for those who do not actively accept, their tokens will be locked indefinitely.

My demand is simple," Sun Yuchen concluded helplessly: “I only ask for equal treatment with other early investors, and I should not be exploited.”

• This article is reprinted with permission from: “BlockBeats”
• Original title: “Dissatisfied with malicious token freezing! Sun Yuchen sues World Liberty Financial”
• Original author: Block Sister MEL