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WLFI Holders Threaten the Project with Class Action

WLFI Holders Threaten Trump's Sons' Project with Class Action

The team behind the DeFi platform World Liberty Financial (WLFI) has proposed extending the vesting period to four years. Investors have labeled the initiative a “scam.” 

The developers intend to replace the indefinite lock of 62.3 billion WLFI with a scheduled release plan.

For founders, team members, advisors, and partners, a two-year token freeze and a three-year token release period are planned. They are also required to burn 4.5 billion coins. 

Early participants’ assets will be locked for two years, with fund access taking an additional 24 months.  

“If holders do not approve the new schedule, their tokens will remain locked under the old terms indefinitely,” noted WLFI.

The proposal requires a quorum of 1 billion WLFI and a simple majority after a seven-day vote, the team reported. Once the functionality is deployed, holders will have 10 days to accept the terms.

“Not a Vote, but Coercion”

The largest WLFI holder and TRON founder Justin Sun opposed the initiative. 

“Not governance, but farce. Presented as a ‘governance alignment signal’ and ‘long-term commitment,’ but in essence, it is one of the most absurd governance scams I have ever seen,” he wrote. 

The entrepreneur described the proposal as a “logical trap” that would permanently lock the tokens of holders voting against it. According to him, the developers have provided direct punishment for dissenters. 

“This is not a vote. This is coercion. What democratic process rewards agreement and punishes dissent?” Sun noted. 

He also reported that he and several other major WLFI investors were barred from voting — their governance tokens were frozen by the project team.

Conflict with the Community and Threat of Lawsuits

Disagreements between the TRON founder and the Trump-affiliated platform began back in 2025. At that time, after transferring 50 million coins, Sun’s address was blacklisted by WLFI. 

The discussion intensified following reports that World Liberty Financial was taking loans against its own governance tokens. Other WLFI holders joined the criticism, especially after the new vesting schedule proposal. 

Some users plan to file a class action lawsuit against the project.

“If you hold this coin, do not accept the terms. The two-year vesting will end after Trump’s term, and by then this thing will be worth zero,” wrote an investor under the nickname kripu. 

Many called World Liberty Financial’s actions a scam, expressing hope for future legal proceedings. At the time of writing, the developers had not commented on the claims.

In May 2025, investor Jonathan Lopez filed a lawsuit against WLF’s head of data and strategy, Chase Herro, accusing him of fraud. 

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