Justin Sun Blasts WLFI Over "Governance Scam" Amid Growing Crypto Controversy

Tron founder Justin Sun has launched a fierce public attack against World Liberty Financial (WLFI), the Trump-linked cryptocurrency project, accusing it of orchestrating what he calls "one of the most absurd governance scams" in the crypto space. The escalating dispute has drawn significant attention from investors and the broader blockchain community.

In a detailed post on X, Sun alleged that WLFI's latest governance proposal is deliberately structured to punish token holders who oppose it. According to Sun, anyone voting against the measure risks having their tokens locked indefinitely — a mechanism he argues amounts to financial coercion rather than legitimate decentralized governance. He also claimed that tokens representing approximately 4% of voting power under his control had been frozen, effectively silencing major stakeholders.

Sun further questioned the legitimacy of the entire process, pointing to anonymous wallet addresses, a multisignature setup capable of overriding votes, and an account with blacklisting authority. "This proposal is not governance," Sun stated. "It is an exercise of power by the selected few."

At the heart of the controversy is WLFI's new proposal to restructure token lockups across its ecosystem. Over 62 billion tokens would be subjected to multi-year vesting schedules, with insiders facing a two-year lockup and a five-year gradual release period, plus a 10% token burn. Holders rejecting the new terms face permanent token locks, and up to 4.5 billion tokens could ultimately be destroyed.

Simon Dedic, founder of Moonrock Capital, echoed Sun's concerns, stating that early investors had been effectively "rugged" by the Trump-affiliated project. WLFI defended the proposal, calling it a long-term alignment strategy for ecosystem participants.

This confrontation marks the latest chapter in a months-long feud between Sun and WLFI, which previously blacklisted a wallet linked to him holding roughly $107 million in governance tokens — a dramatic reversal from late 2024, when Sun invested $30 million in the project and served as an advisor.