WLFI Threatens Lawsuit After Justin Sun Alleges Token Freeze

World Liberty Financial (WLFI) announced plans to sue Justin Sun after the Tron founder accused the project of secretly adding blacklist controls to its token contracts and freezing his WLFI holdings.

WLFI posted a public statement that threatened legal action and declared, “We have the contracts. We have the evidence. We have the truth. See you in court.” The dispute escalated after Sun posted on X on April 12, 2026, alleging undisclosed controls and calling for the people behind WLFI’s account to identify themselves.

Contract history is central to the conflict. Project records show the original WLFI token contract deployed in September 2024 did not include blacklisting or seizure features. A blacklist function was added in August 2025, about 11 months after Sun’s initial investment and shortly before trading began. A November 2025 upgrade introduced a “batch reallocation” mechanism that WLFI says is intended to recover stolen or compromised funds.

Sun invested about $75 million in WLFI and has described himself as the “first and single largest victim” of the alleged controls. Shortly after a token unlock, he moved roughly 55 million unlocked WLFI tokens to the exchange HTX. Sun wrote on X that the team implanted “backdoor controls” and that assets were frozen “without disclosure or due process.”

WLFI asserts the project froze Sun’s wallet after internal monitoring flagged what it characterized as backend selling into the market while retail users were locking tokens. The team says the freeze was applied for breaching contractual terms; the specific contract language WLFI cited has not been published.

Questions have been raised about the token distribution and governance setup. Data indicates Sun was placed in a separate vesting category that allowed a 20% upfront lump-sum unlock while the remaining 80% shows no clearly defined vesting schedule and continues to display zero claimable balances. Reports also indicate a single guardian address may have been able to blacklist wallets rather than a multisignature set of approvals.

WLFI’s treasury activity is also under scrutiny. The project reportedly used billions of WLFI tokens as collateral on lending platforms to borrow stablecoins and to move liquidity through internal structures.

Market data show WLFI trading around $0.078, down roughly 53% over the past 90 days and about 83% below its all-time high of $0.46. TRON’s token TRX traded near $0.322 and has risen more than 15% over the past 60 days; Bitcoin fell more than 3% in the 24 hours before reporting.

At present, the legal basis for the wallet freeze and the precise contract clauses WLFI plans to cite have not been disclosed. Both parties appear to be preparing for litigation and are expected to present contract records and other evidence in court.