Tron founder Justin Sun has taken legal action against World Liberty Financial, a cryptocurrency firm with ties to the Trump family, alleging that the company improperly froze his $WLFI token holdings and engaged in fraudulent activities. According to the lawsuit, Sun invested $45 million in $WLFI tokens after being solicited by World Liberty in 2024, partly due to the project's association with the Trump family. However, when Sun declined to invest further, World Liberty's leadership allegedly became hostile and froze his assets.
The lawsuit claims that World Liberty made false representations about the rights and liberties associated with purchasing $WLFI tokens and that the company has centralized control over its tokens, contrary to its claims of operating in the decentralized finance sector. The complaint also alleges that World Liberty changed the smart contract governing $WLFI to add a 'blacklisting' function, which allowed the company to freeze tokens without disclosing this to investors.
Sun's lawsuit seeks to address the unfair treatment of his investments and to highlight the allegedly fraudulent activities of World Liberty Financial. A spokesperson for World Liberty Financial declined to comment on the lawsuit. The case raises questions about the company's regulatory status and its claims of decentralization.