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 froze his $WLFI token holdings without justification, made false representations, and threatened him. The lawsuit, which mentions Sun's support for former US President Donald Trump, claims that World Liberty's leadership engaged in an illegal scheme to seize Sun's tokens, which he purchased after being solicited by the company in 2024.
According to the lawsuit, Sun invested $45 million in $WLFI tokens due to the project's potential to promote decentralized finance and its association with the Trump family. However, when Sun refused to continue investing in 2025, World Liberty's principals allegedly became hostile towards him. The lawsuit also claims that World Liberty made fraudulent misrepresentations about the rights of token holders and the governance of the $WLFI tokens.
Furthermore, the company is accused of having centralized control over its tokens, despite presenting itself as a decentralized finance business. The lawsuit alleges that World Liberty modified the smart contract governing $WLFI in August 2025 to add a 'blacklisting' function, which allowed the company to freeze tokens in specific wallets without disclosing this change to investors.
This modification was allegedly used to freeze Sun's tokens, pressuring him to mint $200 million of World Liberty's USD1 stablecoin and manipulating the market price of $WLFI tokens. The complaint also raises regulatory concerns, suggesting that World Liberty's ability to issue, freeze, and reassign tokens may qualify it as a money transmitter under US Financial Crimes Enforcement Network rules. Other allegations include threats made by World Liberty's co-founder, Chase Herro, to burn Sun's $WLFI tokens and report him to US authorities.
Sun has stated that he tried to resolve the situation amicably and seeks to be treated equally to other early investors who received tokens.