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On August 22, Sun Yuchen, founder of TRON, stated in a post that his lawsuit against World Liberty Financial superficially involves a business dispute over $45 million and 4 billion tokens, but fundamentally pertains to the foundational principles of blockchain. He emphasized that the industry is built on the principle of 'your keys, your coins', meaning that everyone should truly own their assets without permission. Sun pointed out that the case exposes the other party's secret embedding of the power to arbitrarily freeze user assets within the contract, which was undisclosed, lacked governance, and had no procedures, and was exercised just days after the token unlock. He believes this contradicts the notion of 'freedom'; if issuers can confiscate holders' assets at any time, blockchain would be no different from the old world. He intends to pursue the lawsuit to the end, not only to recover assets but also to establish a legal precedent in court that 'your assets must truly belong to you'.

On August 22, Sun Yuchen, founder of Tron, stated in a post that his lawsuit against World Liberty Financial superficially involves a commercial dispute over $45 million and 4 billion tokens, but fundamentally concerns the foundational principles of blockchain. He pointed out that the industry is built on the premise of 'your keys, your coins', meaning that everyone should truly own their assets without permission. Sun Yuchen indicated that the case exposes the other party's secret embedding of the power to arbitrarily freeze user assets within the contract, which was not disclosed, lacked governance, and lacked procedure, and was exercised within days of unlocking their tokens. He believes this contradicts the notion of 'freedom'; if the issuer can confiscate holders' assets at any time, blockchain would be no different from the old world. He intends to pursue the lawsuit to the end, not only to recover assets but also to establish a legal precedent in court that 'your assets must truly belong to you'.

On August 21, Sun Yuchen, founder of TRON, disclosed on the X platform that his legal team successfully opposed World Liberty Financial's attempt to move their dispute into confidential arbitration and seal case materials during a hearing in a California federal court. The court supported Sun Yuchen's claim for a public trial. The judge ruled that all of Sun Yuchen's personal claims will proceed in open court, rejecting World Liberty's request to transfer all company-related claims to arbitration, and ordered both parties to negotiate the scope of claims to be handled by the court and submitted for arbitration. Sun Yuchen is the largest early investor in World Liberty, having invested $45 million to acquire WLFI tokens, which he claims helped the project achieve a token sale scale of $550 million. The lawsuit alleges that World Liberty embedded backdoors in the WLFI smart contract, allowing it to unilaterally freeze, restrict, or destroy tokens without notice or due process, and that it has already executed such actions against Sun Yuchen's assets, threatening to escalate the matter to criminal proceedings. The claim amount is in the hundreds of millions of dollars, and Sun Yuchen has obtained a court injunction prohibiting the project from disposing of the involved tokens. He further warned that the stablecoin USD1 issued by the project also has similar backdoor functionalities. In his tweet, Sun Yuchen listed several risk indicators, noting that nearly half of World Liberty's treasury WLFI tokens have been pledged to a lending platform co-founded by its CTO, Dolomite, which has lent out at least $75 million in assets, a model likened to FTX-style high-leverage operations in the industry. He also revealed that some core personnel of the project previously operated the DeFi project Dough Finance, which faced lawsuits related to suspected asset misappropriation. Sun Yuchen questioned World Liberty's solvency, stating that aside from the USD1 collateral assets belonging to users, there is no evidence that the project has the capital to cover a judgment of hundreds of millions of dollars. He also mentioned that there may be other affected investors preparing to file lawsuits, urging the market to be cautious of WLFI and USD1, and advising investors to conduct thorough due diligence.