Tron founder Justin Sun has initiated 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, made false representations, and issued threats against him. The lawsuit, filed recently, asserts that World Liberty's actions constitute an 'illegal scheme to seize property' in the form of Sun's tokens, which he claims to have purchased after being approached by the company's team in 2024. At the time of the investment, Sun was drawn to the project due to its purported commitment to promoting decentralized finance, a cause he deeply cares about, as well as its connection to the Trump family. According to the lawsuit, Sun invested $45 million in $WLFI tokens, motivated by the project's promises and the Trump family's involvement.
A spokesperson for World Liberty Financial declined to comment on the lawsuit. The filing states that World Liberty requested Sun to continue investing in the project through 2025, including a proposal to mint the company's USD1 stablecoin.
However, when it became apparent that Sun would not invest on the company's terms, World Liberty's principals allegedly became hostile towards him. The lawsuit claims that World Liberty induced Sun to invest through 'fraudulent misrepresentations and omissions' regarding the economic rights associated with purchasing $WLFI tokens. These misrepresentations allegedly included statements about token holder rights, public statements by World Liberty or its executives about governance rights, and claims about the 'freedom to transact.' Sun's lawsuit also alleges that World Liberty, despite presenting itself as a decentralized finance business, exerted centralized control over its tokens.
The complaint states that World Liberty modified the smart contract governing $WLFI in August 2025 to introduce a 'blacklisting' function, allowing the company to freeze tokens in specific wallets without notifying investors or putting the change to a governance vote. The lawsuit claims that this modification enabled World Liberty to freeze Sun's tokens, serving a dual purpose: pressuring him to mint $200 million of the company's USD1 stablecoin on his Tron blockchain and manipulating the market price of $WLFI tokens by preventing one of the largest holders from selling.
By freezing Sun's position, the complaint argues, World Liberty artificially inflated the market price of $WLFI tokens held by the company's founders and its corporate treasury. The lawsuit raises regulatory concerns, suggesting that World Liberty's ability to issue, freeze, and reassign tokens may qualify it as a money transmitter under U.S.
Financial Crimes Enforcement Network rules, subjecting it to registration and anti-money laundering requirements. The complaint also alleges that World Liberty made threats against Sun and his businesses, including a claim by co-founder Chase Herro that he would burn Sun's $WLFI tokens if Sun did not request their destruction. Herro allegedly threatened to report Sun to U.S. authorities, citing inadequate know-your-customer documentation.
Portions of the lawsuit have been redacted, with an attached filing citing a confidentiality provision and offering the World Liberty team the opportunity to decide whether the redacted provisions should remain sealed. In a social media post, Sun stated that he had attempted to resolve the situation in good faith and sought equal treatment as other early investors who received tokens.
Sun also expressed his opposition to a new governance proposal published by World Liberty on April 15. The lawsuit comes after Sun settled charges with the U.S. Securities and Exchange Commission last month, agreeing to pay a $10 million fine to resolve a case brought by the previous presidential administration.