The Feud Between Justin Sun and World Liberty Financial Just Got a Lot Bigger

TLDR

• Justin Sun called WLFI’s new governance proposal “one of the most absurd governance scams” he has seen
• The proposal would lock over 62 billion WLFI tokens for up to four years, or indefinitely for those who reject the terms
• Sun claims his 4% stake has been frozen, excluding him from the vote
• Moonrock Capital founder Simon Dedic said early investors had been “rugged” by the Trump family
• WLFI says the proposal is designed to “align all participants in the ecosystem for the long run”

Trump’s crypto project World Liberty Financial is under fire after releasing a governance proposal that would lock early investors’ tokens for years — or indefinitely if they refuse the new terms.

The proposal, posted to WLFI’s governance forum on Wednesday, would place more than 62 billion WLFI tokens under new lockup rules. Team members, advisers, and partners would face a two-year lockup followed by a three-year gradual release. Early supporters get slightly shorter vesting terms but still face multi-year delays before accessing their tokens.

Holders who reject the new terms would have their tokens locked indefinitely, with no clear path to access them.

Up to 4.5 billion tokens could also be permanently burned under the plan, with insiders facing a 10% token burn on opting in.

Sun says he holds roughly a 4% stake in World Liberty, but his tokens are currently frozen. He claims this has shut him out of the voting process entirely.

He also raised concerns about who actually controls the protocol. Sun said anonymous wallet addresses — including a multisignature wallet that can override votes and a separate account that can blacklist users — hold real power over outcomes.

Investor Backlash Grows

Sun was not alone in pushing back. Simon Dedic, founder of Moonrock Capital, said early investors had been “rugged” by the Trump family.

A Feud That Has Been Building for Months

The dispute between Sun and WLFI goes back to September, when the project blacklisted a blockchain address linked to Sun that held roughly $107 million in governance tokens.

This was a sharp reversal from late 2024, when Sun invested $30 million in WLFI and took on an advisory role.

Tensions rose further after WLFI deposited 5 billion of its own tokens into lending protocol Dolomite — co-founded by one of its advisers — and borrowed around $75 million in stablecoins. The token fell 12% to a record low the following day.

Sun publicly accused the project of treating users as “personal ATMs.” WLFI responded with threats of legal action.

Voting on the proposal is set to begin soon and will run for one week. The WLFI token is currently trading at around 8 cents, down more than 40% this year and over 75% from its all-time high of 33 cents.

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