Justin Sun Sues World Liberty Financial Over Frozen Tokens

TRON founder and billionaire Justin Sun filed a lawsuit against World Liberty Financial, the Trump family's cryptocurrency project, in federal court on Tuesday. The suit accuses the company of engaging in an illegal scheme to seize his $WLFI tokens by freezing them, revoking his governance voting rights, and threatening to burn the assets.

Sun invested $30 million in November 2024 and increased it to $45 million in January 2025. The filing was made in the Northern District of California Federal Court. Sun alleged that World Liberty Financial pressured him to mint and promote its USD1 stablecoin, and retaliated when he refused by altering systems to blacklist wallets and freeze tokens.

The company had promised decentralization but changed its protocols to enable these actions.

announced the lawsuit in a post on X, detailing the company's actions. He claimed the leadership froze all his tokens without justification and threatened permanent destruction. The suit states that initial demand for $WLFI tokens was lackluster until his investment boosted interest.

“This lawsuit does not change how I feel about President Trump or the Trump 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 emphasized that he attempted to resolve the issue privately but was refused. The lawsuit alleges the company's operators are leveraging the Trump brand for fraudulent profit. It further claims recent actions indicate the firm may be on the brink of collapse and potential insolvency.

ties to the Trump family were a key factor in Sun's decision to invest. The suit notes that despite these links, the project's management has deviated from promised principles. Sun remains an ardent supporter of President Trump and does not blame him for the issues.