Tron founder Justin Sun has initiated a lawsuit against World Liberty Financial, a cryptocurrency firm with ties to the family of former US President Donald Trump, alleging that the company improperly froze his $WLFI token holdings and made false representations. The lawsuit claims that World Liberty's actions were part of an 'illegal scheme to seize property' and that the company's leadership became hostile towards Sun when he declined to invest further.
According to the filing, Sun had invested $45 million in $WLFI tokens in 2024, partly due to the project's association with the Trump family. However, when Sun refused to continue investing in 2025, World Liberty allegedly changed the smart contract governing $WLFI to add a 'blacklisting' function, allowing the company to freeze tokens without disclosing this to investors.
The lawsuit alleges that this move was used to pressure Sun into minting $200 million of World Liberty's USD1 stablecoin and to artificially inflate the market price of $WLFI tokens. The complaint also raises concerns about World Liberty's claims of decentralization and its potential status as a money transmitter under US regulations. A spokesperson for World Liberty Financial stated that the company had no comment on the lawsuit.
Sun has expressed his desire to be treated equally to other early investors and has voiced his opposition to World Liberty's new governance proposal.