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 false promises. The lawsuit, which was filed on Tuesday, claims that World Liberty's leadership engaged in an illegal scheme to seize Sun's property and made fraudulent misrepresentations about the project. According to the lawsuit, Sun invested $45 million in $WLFI tokens in 2024 after being solicited by the World Liberty team, but the company later became hostile towards him when he refused to continue investing. The lawsuit alleges that World Liberty changed 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 it to investors.
The complaint also claims that World Liberty's freezing of Sun's tokens was an attempt to pressure him into minting $200 million of the company's USD1 stablecoin and to manipulate the market price of $WLFI tokens. The lawsuit raises questions about World Liberty's claims of decentralization and its potential status as a money transmitter under US law.
Other allegations in the complaint include threats made by World Liberty's co-founder, Chase Herro, against Sun and his businesses. Sun has stated that he tried to resolve the situation amicably but was left with no choice but to take legal action.