Tron founder Justin Sun has filed a lawsuit against World Liberty Financial, a cryptocurrency firm with ties to the Trump family, alleging that the company froze his $WLFI token holdings without justification and made false representations. The lawsuit, which was filed on Tuesday, claims that World Liberty's actions were part of an 'illegal scheme to seize property' and that the company's leadership engaged in fraudulent behavior.
According to the suit, Sun invested $45 million in $WLFI tokens after being solicited by World Liberty's team in 2024, but the company later became hostile towards him when he refused to continue investing. The lawsuit alleges that World Liberty made false statements about the rights of token holders and the governance of the $WLFI tokens, and that the company centralized control over the tokens despite presenting itself as a decentralized finance project.
The suit also claims that World Liberty changed the smart contract governing $WLFI in August 2025 to add a 'blacklisting' function that allowed the company to freeze tokens in specific wallets, and that this modification was not disclosed to investors. Sun's lawsuit seeks to have his tokens unfrozen and to recover damages for the alleged harm caused by World Liberty's actions. A spokesperson for World Liberty Financial declined to comment on the lawsuit.
The case raises questions about the company's compliance with regulatory requirements and its claims of decentralization.