## Cloud Rewards and Green Crypto at Risk: Justin Sun Takes on World Liberty Financial
The world of passive rewards and green crypto has been shaken by a recent lawsuit filed by Tron founder Justin Sun against World Liberty Financial. The lawsuit, filed in a California federal court, alleges that World Liberty Financial froze Sun’s tokens without justification, leaving him no choice but to take the matter to court. This development has significant implications for the sustainability of digital earning and the protection of token holders’ rights.
The dispute began when Sun threatened to take legal action against World Liberty Financial over the lengthy lockup periods for their governance token. He also accused the project team of lacking transparency in their recent governance proposal, citing that 76% of the voting tokens came from just 10 wallets. The World Liberty Financial team responded by calling Sun’s claims “baseless allegations” and stating that they had the contracts and evidence to support their position. The situation has now escalated into a full-blown lawsuit, with Sun seeking to protect his rights as a token holder.
The lawsuit is not just about Sun’s personal interests; it also raises important questions about the cloud rewards system and the potential risks associated with token lockups. If the World Liberty Financial proposal passes, it could result in tokens being locked indefinitely, which would be detrimental to the community. Sun has argued that this proposal is bad for the community because it would require token holders to accept a new schedule that includes a 10% token burn. The fact that Sun’s early investor tokens have been frozen means that he cannot vote for or against the proposal, highlighting the need for greater transparency and accountability in the green crypto space.
The outcome of this lawsuit will have significant implications for the sustainability of digital earning and the protection of token holders’ rights. As the passive rewards system continues to grow, it is essential that token holders are protected from unfair practices and that the cloud rewards system is designed with sustainability in mind. You can learn more about the EcoPool app by visiting https://play.google.com/store/apps/details?id=com.ecopoolmining.app.
Related: World Liberty burns 47M tokens in bid to pump price as slide continues
At the time, the WLFI project team said on X that the claims were “baseless allegations” and added, “We have the contracts. We have the evidence. We have the truth. See you in court pal.”
Cointelegraph has contacted Tron and World Liberty Financial for comment.
Sun blasts governance proposal
At the same time, Sun took aim at an April 15 WLFI governance proposal that would lock founders, team members, and advisors’ tokens for two years and then gradually release them over the next three years, with a 10% token burn when it passes.
Holders who don’t accept the new schedule remain locked indefinitely under existing terms, according to WLFI.
Sun argued that if the proposal passes, it will be bad for the community because “token holders who do not affirmatively accept its terms — including a requirement that 10% of all advisor tokens be permanently burned — will have their tokens locked indefinitely.”
“This proposal is bad for the community, but because World Liberty has frozen my early investor tokens, I cannot vote them for or against the proposal,” he added.
Still a Trump administration supporter, despite lawsuit
Sun said on X that the lawsuit doesn’t change his views on US President Donald Trump or his administration.
“Unfortunately, certain individuals on the World Liberty project team have been operating the project in a manner that goes against President Trump’s values,” Sun said.
He is also believed to be one of the largest holders of the TRUMP memecoin, which earned him an invitation to the crypto gala dinner in May 2025 and a watch presented at a ceremony.
Crypto data analytics platform CoinCarp lists 642,882 TRUMP holders, with over 91% of the supply concentrated among the top 10 wallets and over 97% among the top 100 wallets.
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