Justin Sun just sued
$WLFI (World Liberty Financial).
Let Me Tell You What happened
Filed Tuesday, Apr 15, 2026: Crypto entrepreneur Justin Sun filed a lawsuit in California federal court against Trump-backed World Liberty Financial. The suit is to "protect his legal rights as a holder of WLFI tokens".
Why he's suing
1. Token freeze/blacklisting: Sun claims WLFI "secretly" implemented a tool to unilaterally freeze and restrict private holdings of its WLFI token. His wallet was blacklisted in September 2025, freezing 545 million tokens. Due to WLFI's price drop, his unrealized losses from the frozen wallet now exceed $80 million.
2. Governance/control issues: Sun asked WLFI to disclose control over the "guardian Externally Owned Account and multisignature wallets" governing its smart contracts. He alleges a single guardian tied to the WLFI multisig can freeze any token holder's assets, while seizing requires a 3-of-5 multisig vote. Onchain analysts said blacklist functions were added via smart contract upgrades in late 2025, nearly a year after Sun's initial investment.
WLFI's response
WLFI denies wrongdoing and threatened to countersue. On Apr 12, 2026 they posted: "We have the contracts. We have the evidence. We have the truth. See you in court pal." They claim Sun is "playing the victim while making baseless allegations".
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