Justin Sun, founder of Tron, claims that he took World Liberty Financial to court when they threatened to freeze and destroy his tokens without giving him a reason. World Liberty Financial is backed by the Trump family. Sun said on Wednesday that he was suing in a California federal court to protect the rights of token holders.
Because 76% of the voting tokens came from 10 wallets, Sun hinted in a previous statement that WLFI’s new governance model was not transparent. Earlier this month, he threatened legal action over the increased lockup periods for the governance token.
Sun added:
“I have tried in good faith to resolve this situation with the World Liberty project team without resorting to litigation. But the project team has refused my requests to unfreeze my tokens and restore my rights as a token holder. They have left me with no choice but to turn to the courts.”
Opposing Proposed Governance Plan
Declaring the claims to be “baseless allegations,” the WLFI project team released its comment on X at that time. “We have the contracts. We have the evidence. We have the truth. See you in court pal.”
On the other hand, Sun came out against WLFI’s proposed governance plan on April 15. This plan aimed to lock the tokens of the founders, team members, and advisors for two years, release them gradually over the next three years, and then burn 10% of the tokens when the proposal expired.
Holders who reject the amended schedule will remain locked with the present circumstances forever, according to WLFI. Sun claims that approving the plan would be bad for the community since it will permanently freeze the tokens of anybody who doesn’t agree to its requirements. Ten percent of all advisor tokens must be burned permanently as part of these rules. Sun said on X that, despite the lawsuits, his views on Trump and his administration had not changed.