孙宇晨起诉WLF文件：四个「离谱」细节浮出水面

Original Author: Aleks Gilbert

Original Translation: Chopper, Foresight News

Crypto billionaire Justin Sun wants to maintain good relations with Donald Trump but has taken a tough stance against the president's business partners.

In a lawsuit filed Tuesday, Sun accused World Liberty Financial executives of fraud, theft, and other illegal activities.

The allegations were not couched in lengthy, dry legal jargon. Instead, the complaint emphasized that World Liberty Financial is facing "closure and potential bankruptcy" and struggling to operate.

Sun directed his harshest criticisms at one person: World Liberty co-founder Chase Herro, whom the complaint describes as a habitual fraudster and tax evader.

Some details have been previously reported. Claims like World Liberty's imminent closure are purely speculative. Even so, the lawsuit will provide ample ammunition for the company's critics, including disgruntled investors and opposition lawmakers looking for an opportunity.

On Wednesday, when asked about the lawsuit, a spokesperson for World Liberty Financial pointed to a statement made by the company's co-founder on social media.

The company's CEO, Zach Witkoff, called the lawsuit a "desperate attempt by Justin Sun to divert attention from his own misconduct."

Herro did not directly respond to the lawsuit. He reposted Rudyard Kipling's inspirational poem and Witkoff's statement, captioning them: "Building is never easy; it's often filled with successes and failures, like a giant maze you must navigate."

Below are four of the most notable allegations and details from the 52-page lawsuit.

Herro's Past

Mainstream media reports have previously detailed Herro's troubled history, including a prison record, inflammatory remarks, questionable business dealings, and involvement in a 2024 DeFi protocol that lost nearly all its crypto assets due to a hack.

The lawsuit includes all of this information while adding several new details.

The complaint states: "Herro's business misconduct was so egregious that, around 2010, deceived customers and partners created a website called ChaseHeroScam.com."

The website was inaccessible on Thursday, and DL News could not verify if the site contained the content mentioned in Sun's lawsuit.

The complaint alleges that Herro has faced four tax lien orders from courts and that a tax deed was issued for a property he owns in Florida.

The lawsuit also claims that Herro "publicly boasted" about visiting Little St. James Island, the private island belonging to disgraced financier Jeffrey Epstein. However, the complaint provides no evidence of this claim, and DL News could not immediately verify whether Herro made such statements.

'Secret' Upgrades

Since the project's early days, holders of World Liberty Financial's governance token, WLFI, have had limited authority.

According to company documents, token holders cannot participate in the operation of World Liberty Financial but can vote on upgrades to the underlying technology.

Sun accuses World Liberty executives of secretly completing two technical upgrades unilaterally last year, without any governance vote or disclosure to WLFI holders.

These upgrades are alleged to have granted World Liberty Financial the power to freeze and seize WLFI tokens, a power that has reportedly been used against Sun. Sun described this upgrade as devastating.

"Although the upgrade is visible on the public blockchain, World Liberty Financial hid it deep within the code without informing token holders of the feature's existence or potential impact," the lawsuit states. "The company stealthily added a 'blacklist' function that could be activated at will."

World Liberty Financial stated that the freeze function is intended solely to protect user interests.

In his statement, Witkoff said: "Justin Sun engaged in misconduct, and World Liberty Financial had to take action to protect its own interests and those of its users. World Liberty Financial will continue to take all necessary measures to safeguard the community ecosystem."

TRUMP Meme Coin

World Liberty Financial's allegations regarding Sun's alleged misconduct have been vague. However, Sun claims that company executives provided detailed explanations privately.

The reasons cited include: executives determined that Sun sold tokens, causing WLFI's price to drop by 40%; improperly purchased tokens on behalf of others; and violated the "Token Purchase Agreement."

But the lawsuit points to another trigger for the conflict: the TRUMP Meme coin.

"World Liberty Financial stated that one reason for freezing the WLFI tokens was its displeasure over Sun purchasing $100 million worth of TRUMP tokens (issued by another Trump-endorsed project)," the lawsuit reads. Part of the next sentence is redacted, but it concludes by stating that something (likely the purchase of TRUMP tokens) "was pre-approved by a member of the Trump family, who is also a partner in both projects."

The lawsuit does not explain why World Liberty Financial would object to Sun purchasing TRUMP tokens.

Money Transmission Business Violations

Last year, two crypto developers were sentenced to prison for operating unlicensed money transmission businesses, and another was convicted on similar charges but has not yet been sentenced.

Sun accuses World Liberty Financial of violating the same regulations.

The lawsuit argues that World Liberty Financial became a money transmitter by empowering itself to transfer tokens on behalf of others.

"World Liberty's highly centralized control over WLFI tokens is not only completely antithetical to the principles of DeFi, but also indicates that it is conducting money transmission business without registration or a license, violating multiple U.S. federal and state criminal laws."