
"Justin Sun alleges that World Liberty Financial used an undisclosed backdoor blacklisting function in its smart contracts, allowing them to freeze investor tokens without notice."
"World Liberty Financial maintains that the token freeze was a routine security measure and not specifically targeted at Justin Sun."
"The lawsuit filed by Sun includes claims of breach of contract, fraud in the inducement, conversion, unjust enrichment, and seeks declaratory relief."
Justin Sun has initiated a lawsuit against World Liberty Financial in a California federal court, claiming that his $75 million WLFI token position was frozen without prior disclosure. He alleges that an undisclosed smart contract function was responsible for freezing his 2.9 billion WLFI tokens. World Liberty Financial contends that the freeze was a standard security measure. Sun's investment in WLFI began in late 2024, and the relationship deteriorated when his wallet was frozen in September 2025, leading to the current legal dispute.
Read at news.bitcoin.com
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