Today in crypto, Justin Sun has filed a lawsuit against World Liberty Financial, alleging that the company froze his tokens and threatened to burn them without justification.
New York Attorney General Letitia James filed suit against Coinbase and Gemini in the latest state legal challenge to prediction markets, shipping companies with vessels stranded near the Strait of Hormuz are reportedly being targeted by scammers posing as Iranian authorities.
Justin Sun sues World Liberty Financial over token lockup
Tron founder Justin Sun said he has filed a lawsuit against Trump-family-backed World Liberty Financial for allegedly freezing his tokens and threatening to burn them “without any proper justification.”
In a post to social media on Wednesday, Sun said the suit, filed in a California federal court, was meant to protect his rights as a token holder.
“I have tried in good faith to resolve this situation with the World Liberty project team without resorting to litigation. But the project team has refused my requests to unfreeze my tokens and restore my rights as a token holder. They have left me with no choice but to turn to the courts,” he added.
Sun previously threatened legal action earlier this month over lengthy lockup periods for WLFI’s governance token and accused WLFI’s recent governance proposal of lacking transparency because 76% of the voting tokens came from 10 wallets.
New York targets Coinbase, Gemini in fresh crackdown on prediction markets
New York's attorney general has filed lawsuits against crypto exchange operators Coinbase Financial Markets and Gemini Titan for allegedly violating state gambling laws, according to court records cited by Reuters.
Copies of the complaints show the state alleges both exchanges failed to obtain licenses from the New York State Gaming Commission to operate their markets, Reuters reported.
“Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution,” Attorney General Letitia James said in a statement.
James said the lawsuit seeks to recover alleged illegal profits from operating prediction markets in the state, as well as restitution, and would bar Coinbase and Gemini from offering such products to individuals under 21.
Scammers demand crypto from stranded ships in Strait of Hormuz: Report
Fraudulent actors posing as Iranian authorities have reportedly sent messages to shipping companies whose vessels remain stranded west of the Strait of Hormuz, demanding payment in cryptocurrency for safe passage.
On Monday, maritime risk company Marisks issued a warning saying unknown groups had contacted shipowners claiming to represent Iranian security services and requesting transit “fees” in Bitcoin (BTC) or USDt (USDT) in exchange for clearance through the strait, according to Reuters.
“These specific messages are a scam,” Marisks reportedly said, adding that they do not originate from Iranian authorities. Tehran has not publicly commented on the claims.
The alerts come as the strategic waterway remains largely closed following the outbreak of conflict in the Middle East. The Strait of Hormuz, a critical chokepoint for global energy flows, previously handled around one-fifth of the world’s oil and liquefied natural gas exports before hostilities escalated in the region.
Earlier this month, reports said Iran was considering charging ships passing through the Strait of Hormuz a tariff payable in Bitcoin, with empty tankers allowed free passage while others could be charged around $1 per barrel of oil.
