Justin Sun Accuses Trump-Linked WLFI of 'Governance Scam' Amid Lockup Dispute

Justin Sun, the founder of Tron, has launched a scathing attack on World Liberty Financial (WLFI), describing a recent governance proposal as one of the most 'absurd governance scams' he has encountered. Sun alleges the project is using the voting process to consolidate power and punish dissenting token holders. The conflict arises from a proposal to overhaul token lockups for approximately 62 billion WLFI tokens. Under the new terms, insiders—including advisors and partners—would face a two-year lockup followed by a three-year gradual release, with a 10% token burn for those opting in. Crucially, holders who reject the terms risk having their tokens locked indefinitely. Sun claims that tokens representing roughly 4% of the voting power under his control have been frozen. He further alleges that the protocol is effectively controlled by anonymous wallet addresses and a multisignature setup capable of overriding vote outcomes and blacklisting users, arguing that the process is an exercise of power rather than true governance. The fallout is not limited to Sun; Simon Dedic of Moonrock Capital characterized the move as a 'rug pull' by the Trump family against early investors. In response, a WLFI spokesperson defended the move, stating the proposal aims to ensure long-term ecosystem alignment and a healthy market supply. This latest clash follows a period of deteriorating relations. After an initial $30 million investment by Sun in late 2024, the project blacklisted a Sun-linked address holding $107 million in tokens. Tensions peaked after WLFI borrowed roughly $75 million in stablecoins against 5 billion tokens, leading to a 12% price drop and accusations from Sun that the project treats users as 'personal ATMs.'