Justin Sun, the entrepreneur behind the TRON blockchain, has launched a lawsuit against World Liberty Financial, a cryptocurrency project endorsed by U.S. President Donald Trump and his son Eric. The case, filed on Tuesday in a San Francisco federal court, centres on claims that the firm has extorted Sun by freezing his WLFI tokens and stripping his governance rights.
Sun poured $45 million into WLFI shortly after its late 2025 launch, drawn by the Trump connection and his own advocacy for digital assets. He also snapped up $100 million of Trump meme coins in July 2025. At one point, his WLFI holdings exceeded $1 billion, but the token’s value has since plummeted from 31 cents to under 8 cents amid broader market woes and regulatory headwinds.
In a social media post revealing the suit, Sun accused the company of an illegal scheme. “They wrongfully froze all of my tokens, stripped me of my right to vote on governance proposals, and have threatened to permanently destroy my tokens by ‘burning’ them – all without any proper justification,” he wrote.
While WLFI tokens are now tradable for others, Sun says he remains locked out, with leaders like co-founder Chase Herro allegedly exploiting the Trump brand for fraud.
World Liberty denies the charges and portrays Sun as deflecting from his misconduct. Zach Witkoff, a co-founder and son of Trump’s Middle East envoy, dismissed the action outright. “His claims are entirely meritless, and World Liberty looks forward to getting the case thrown out promptly,” Witkoff said, arguing protective steps were essential for users.
Eric Trump piled on with a jab. “The only thing more ridiculous than this lawsuit is spending $6m on a banana duct-taped to a wall,” he remarked, alluding to Sun’s 2024 art stunt.
The row raises red flags over WLFI’s token lending practices and governance, echoing DeFi pitfalls. It coincides with the SEC dropping its probe into Sun’s influencer dealings, queried by Senator Elizabeth Warren over Trump links.
Meanwhile, Trump Media, behind Truth Social, swapped CEO Devin Nunes for Kevin McGurn after shares tanked two-thirds in a year, hampered by niche appeal.
As crypto politics heat up ahead of midterms, this clash exposes tensions in high-profile ventures.