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 engaged in threatening behavior. The lawsuit, filed on Tuesday, asserts that World Liberty's leadership participated in an 'illegal scheme to seize property' in the form of Sun's tokens, which he claims to have purchased after being solicited by the company in 2024.
Sun's investment of $45 million in $WLFI tokens was reportedly motivated by the project's claims of promoting decentralized finance, as well as its association with the Trump family. A spokesperson for World Liberty Financial declined to comment on the lawsuit. The filing alleges that World Liberty asked Sun to continue investing in 2025, including a request to mint the company's USD1 stablecoin. However, when Sun refused to invest on their terms, World Liberty's principals became hostile towards him.
The lawsuit claims that World Liberty made fraudulent misrepresentations about the economic rights and liberties associated with purchasing $WLFI tokens, including statements about token holder rights and 'freedom to transact.' Sun's suit also alleges that World Liberty, despite presenting itself as a decentralized finance business, exerted centralized control over its tokens. According to the complaint, World Liberty modified the smart contract governing $WLFI in August 2025 to add a 'blacklisting' function, allowing the company to freeze tokens in specific wallets without disclosure to investors.
The complaint argues that this modification enabled World Liberty to pressure Sun into minting $200 million of its USD1 stablecoin on the Tron blockchain and manipulate the market price of $WLFI tokens. By freezing Sun's tokens, World Liberty allegedly 'artificially propped up the market price' of $WLFI tokens held by the company's founders and 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. Other allegations in the complaint include threats made by World Liberty co-founder Chase Herro to burn Sun's $WLFI tokens and report him to U.S. authorities for allegedly inadequate know-your-customer documentation. Portions of the lawsuit were redacted, with Sun's team offering World Liberty the opportunity to decide whether these 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. He also expressed opposition to World Liberty's new governance proposal, published 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.