A lawsuit has been filed by Justin Sun, the creator of Tron, against World Liberty Financial, a cryptocurrency firm with ties to the Trump family. The lawsuit alleges that World Liberty engaged in an illegal scheme to seize Sun's $WLFI tokens, made fraudulent claims, and threatened and defamed him. According to the suit, Sun invested $45 million in $WLFI tokens after being solicited by World Liberty in 2024, drawn in by the project's connection to the Trump family and its promise to promote decentralized finance.
However, when Sun refused to continue investing in 2025, World Liberty's attitude towards him allegedly turned hostile. The lawsuit claims that World Liberty made false representations about the rights and freedoms associated with purchasing $WLFI tokens, including statements about governance rights and the ability to transact freely. It is also alleged that World Liberty exercised centralized control over its tokens, contrary to its decentralized finance claims. In August 2025, World Liberty modified the smart contract governing $WLFI to add a 'blacklisting' function, allowing the company to freeze tokens in specific wallets without disclosing this change to investors.
Sun's tokens were subsequently frozen, which the lawsuit claims was done to pressure him into minting $200 million of World Liberty's USD1 stablecoin and to manipulate the market price of $WLFI tokens. The complaint argues that World Liberty's actions may have regulatory implications, potentially qualifying the firm as a money transmitter subject to registration and anti-money laundering requirements.
Additional allegations include threats made by World Liberty's co-founder, Chase Herro, against Sun and his businesses. Sun has stated that he attempted to resolve the situation amicably and seeks equal treatment as an early investor. He also expressed opposition to World Liberty's new governance proposal.