The conflict continues to escalate.
On April 15, the team behind DeFi platform World Liberty Financial (WLFI▼$0.0594), linked to President Donald Trump’s family, put a proposal to a vote. The proposal seeks to extend the token lock-up period for early investors to four years.
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According to the proposal, investors who vote against it risk having their tokens frozen indefinitely. A quorum of 1 billion WLFI and a simple majority are required for passage.
Justin Sun’s Reaction
TRON founder and one of the largest WLFI holders, Justin Sun, sharply criticized the initiative. He called the proposal “one of the most absurd governance scams” he has ever seen. He stated that this is not a vote but “coercion and a logical trap.”
Sun emphasized that his tokens and those of other large investors have already been frozen by the project team, effectively preventing them from participating in the vote. According to him, actual control over WLFI’s smart contracts belongs to an anonymous multisig wallet that can override any voting result.
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Conflict Escalation
The conflict between Sun and WLFI has been ongoing for several months. Previously, the project froze Sun’s tokens worth approximately $75 million to $107 million after he transferred funds. Sun accused the team of secretly implementing a blacklist function and using tokens as collateral to raise loans.
Some investors have stated their intention to file a class-action lawsuit against the project. They fear that after Trump’s presidential term ends, the WLFI token could lose significant value.
Related: WLFI and Justin Sun Conflict—From $75 Million Investment to Lawsuit Threat
World Liberty Financial has not yet issued an official comment on the latest allegations.
