On Tuesday, Justin Sun, founder of Tron, filed a lawsuit against World Liberty Financial, a stablecoin and cryptocurrency firm supported by Donald Trump’s family members. The suit claims that the company wrongfully froze his $WLFI tokens, made false statements, and engaged in threatening and defamatory actions towards him.
Sun’s legal action details how he was solicited to invest $45 million for $WLFI tokens in 2024, drawn by their promotion of decentralized finance—a cause Sun is passionate about. The investment decision was also influenced by the Trump family’s involvement with World Liberty Financial, according to the lawsuit.
World Liberty requested further investments from Sun through 2025 and asked him to mint its USD1 stablecoin. However, relations soured in July 2025 when it became apparent that Sun would not comply with their terms, prompting hostility from the company’s leadership.
The complaint alleges World Liberty used fraudulent misrepresentations and omissions regarding economic rights tied to the $WLFI tokens, misleading investors about governance rights and transaction freedoms. Despite claiming decentralization, the firm allegedly maintained centralized control over its tokens.
In August 2025, without a governance vote or disclosure to investors, World Liberty modified the smart contract governing $WLFI to include a blacklisting function that froze specific wallet tokens. This change occurred despite recent approval by token holders for making part of the supply tradable.
Sun’s lawsuit also accuses World Liberty of issuing threats against him and his businesses. One co-founder allegedly threatened to destroy Sun’s tokens unless he agreed, while another claimed Sun’s KYC documentation was insufficient and suggested reporting him to U.S. authorities.
Some parts of the lawsuit were redacted due to confidentiality provisions, with an attached filing indicating Sun’s team offered World Liberty a chance to review these sections for public release.
In a post on X, Sun expressed his desire to resolve the situation amicably and stated that he sought equal treatment as other early investors. He also opposed a new governance proposal from World Liberty published on April 15.
Following Trump’s presidency, Sun has visited the U.S., including attending Trump’s first memecoin dinner last year for another crypto initiative linked to Trump.
Earlier this month, Sun settled with the U.S. Securities and Exchange Commission, agreeing to a $10 million fine from charges brought by the previous administration.