“World Liberty induced Plaintiffs to make their investments in World Liberty through fraudulent misrepresentations and omissions about the economic rights and liberties that would come with purchasing $WLFI tokens,” the filing said.

These allegedly fraudulent misrepresentations include statements about the rights token holders had, various public statements World Liberty or its executives made about the governance rights of token holders, and statements about “freedom to transact.”

Sun’s suit also alleged that World Liberty, despite presenting itself as a business operating in the decentralized finance sector, had centralized control over its tokens.

According to the complaint, World Liberty changed the smart contract governing $WLFI in August 2025 to add a “blacklisting” function that allowed the company to freeze tokens in specific wallets. The modification was not put to a governance vote or disclosed to investors, Sun alleges, even as token holders had just approved a proposal to make a portion of the supply tradable

Other allegations in the complaint include that “World Liberty made two overt threats” to Sun and his businesses. Chase Herro, one of World Liberty’s co-founders, allegedly threatened to burn Sun’s $WLFI tokens if Sun did not ask for his tokens to be burned.

“Second, Mr. Herro also falsely claimed that the know-your-customer (‘KYC’) documentation submitted by Mr. Sun and the Sun Companies in connection with their $WLFI token purchases was inadequate,” the filing said.

Herro threatened to report Sun to U.S. authorities, the suit alleged.

Chunks of the lawsuit were redacted. Another filing attached to the lawsuit cited a confidentiality provision, saying Sun’s team was giving the World Liberty team an opportunity to decide whether or not these redacted provisions should remain sealed.

In a post on X, Sun said he had “tried in good faith to resolve this situation.”

“All I want is to be treated the same as every other early investor who received tokens — no better, no worse,” he said.

A spokesperson for World Liberty Financial said they had no comment on the lawsuit.

“I also want the community to know that I strongly oppose the new governance proposal World Liberty published on April 15,” Sun said in his post.

Since Trump took office, Sun has visited the U.S. after previously staying away from the country. He was a guest at Trump’s first memecoin dinner (tied to a different Trump-linked crypto project) last year.

Sun settled charges with the U.S. Securities and Exchange Commission last month, agreeing to pay a $10 million fine to resolve a case brought by the previous presidential administration.

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