Justin Sun, the founder of Tron, 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 fraudulent representations. The lawsuit, which was filed on Tuesday, claims that World Liberty's leadership engaged in an illegal scheme to seize Sun's tokens, which he had 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 claims of promoting decentralized finance and its association with the Trump family.
However, when Sun refused to continue investing in 2025, World Liberty's principals became hostile towards him. The lawsuit alleges that World Liberty made fraudulent misrepresentations about the rights of token holders and the governance of the $WLFI tokens. It also claims that the company changed the smart contract governing the tokens in August 2025 to add a 'blacklisting' function that allowed it to freeze tokens in specific wallets without disclosing this to investors. The lawsuit argues that World Liberty's actions were designed to pressure Sun into minting $200 million of the company's USD1 stablecoin on the Tron blockchain and to manipulate the market price of the $WLFI tokens.
The complaint also alleges that World Liberty made threats against Sun and his businesses, including a threat to burn his $WLFI tokens if he did not ask for them to be burned. The lawsuit raises regulatory questions about World Liberty's ability to issue, freeze, and reassign tokens, which may qualify the company as a money transmitter under US law.