Sun Zhen has recently filed a lawsuit against World Liberty Financial in the U.S. District Court for the Northern District of California to protect his legitimate rights as a holder of the $WLFI token. Sun Zhen stated that the World Liberty project team unilaterally froze all of his tokens, revoked his voting rights on governance proposals, and threatened to permanently burn his tokens—without providing any reasonable justification. He emphasized that he had repeatedly attempted to resolve the dispute through non-litigious means, but the project team refused to unfreeze his tokens or restore his holder rights, leaving him no choice but to pursue legal action. Furthermore, Sun Zhen explicitly opposes the new governance proposal released by World Liberty on April 15. The proposal stipulates that token holders who do not actively accept its terms will be subject to indefinite locking; early purchasers’ tokens must undergo a two-year lock-up period followed by a two-year vesting period. Due to the current freeze on his tokens, he is unable to vote on this proposal.
Sun Yuchen Sues World Liberty Financial Over Token Freeze and Voting Rights
TechFlowShare
Summary
Sun Yuchen has filed a lawsuit against World Liberty Financial in a U.S. federal court in California, accusing the team of freezing his $WLFI tokens and revoking his voting rights. He claims the project team refused to address the issue through non-litigious means and opposes a new governance proposal that impacts liquidity and crypto markets. The proposal locks tokens for two years and imposes a two-year vesting period for early buyers. Sun is currently unable to vote due to the frozen status of his tokens. The case could have broader implications for CFT compliance and governance in decentralized projects.
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