Eric Trump, who lauded Justin Sun in a post on X just ten months ago, now compares the lawsuit initiated by Sun to the infamous $6 million duct-taped banana incident. This week, Sun lodged a complaint in the Northern District of California against World Liberty Financial, accusing it of unlawfully freezing approximately four billion WLFI tokens valued at around $1 billion. The DeFi venture, supported by the Trump family, quickly dismissed Sun’s legal action as a “desperate” attempt to divert attention, with co-founder Zach Witkoff alleging misconduct on Sun’s part.
Sun’s recent lawsuit against @worldlibertyfi is seen as an ill-conceived effort to deflect from his own alleged wrongdoings. His claims are deemed baseless by World Liberty, which anticipates a swift dismissal of the case. However, specifics regarding the alleged misconduct were not detailed. A firm spokesperson referred CoinDesk to statements made by Witkoff and Eric Trump on X.
The complaint may reveal more about Sun’s accusations. It suggests that World Liberty has variably accused Sun in private communications without presenting corroborative evidence. The company reportedly blamed Sun for a 40% drop in WLFI’s value on its first trading day, September 1, 2025, and alleged he manipulated the price through short-selling futures shortly after the significant dip.
Additionally, World Liberty opposed Sun’s acquisition of $100 million worth of TRUMP tokens from another Trump-associated project. Despite this opposition, Sun asserts that a Trump family member involved in both projects approved his purchase. The complaint also claims Sun served as a straw buyer for others, violated transfer agreements by moving assets to exchanges like HTX and Binance, and submitted insufficient KYC documentation. According to the filing, on September 25, 2025, World Liberty’s representative Mr. Herro threatened to report Sun to U.S. authorities over vague KYC issues but refused to provide detailed explanations despite repeated requests for clarity.
World Liberty has yet to file a response to Sun’s lawsuit.