Crypto Billionaire Justin Sun Sues Trump Family’s World Liberty Financial Over Alleged Fraud
Blockchain entrepreneur Justin Sun has filed a lawsuit against World Liberty Financial, the cryptocurrency venture co-founded by President Donald Trump and his sons, alleging the company illegally froze his digital assets and engaged in fraudulent practices to pressure him into further investments.
Sun, a Chinese-born crypto billionaire who has cultivated deep ties with the Trump family, filed the complaint in California federal court, claiming World Liberty Financial wrongfully blocked him from selling tokens worth up to $1 billion and stripped him of voting rights on governance proposals.3
The Allegations
Sun’s lawsuit centers on several key grievances. According to the complaint, World Liberty Financial froze his WLFI tokens—which he purchased for approximately $45 million—after he refused to commit hundreds of millions of dollars to mint USD1, the company’s stablecoin.2 The company subsequently awarded him an additional 1 billion WLFI tokens as an adviser, but later seized these holdings, Sun claims.
The entrepreneur alleges that World Liberty executives, including co-founder Chase Herro, used his frozen tokens as leverage to pressure him into promoting USD1 on his blockchain platform, TRON, describing the strategy as “criminal extortion.” Sun’s complaint also accuses the company’s operators of “engaging in an illegal scheme to seize property,” causing him and his companies hundreds of millions of dollars in damages.
Beyond the asset freeze, Sun states that World Liberty Financial has threatened to permanently destroy his tokens through “burning” and has barred him from voting on governance proposals—including a controversial proposal announced on April 15 that would impose new vesting schedules and mandatory token burns for advisers.
Sun’s Position on Trump
In his X (formerly Twitter) announcement, Sun emphasized that his lawsuit does not reflect opposition to President Trump or his administration’s pro-cryptocurrency stance. “I have always been—and remain—an ardent supporter of President Trump and his Administration’s efforts to make America crypto friendly,” Sun stated, adding that he believes Trump would not condone the actions of “certain individuals” on the World Liberty project team if he were aware of them.
Sun described his investment in World Liberty Financial as motivated partly by the Trump family’s association with the project and noted that he had attempted to resolve the dispute through good-faith negotiations before resorting to litigation.
World Liberty Financial’s Response
World Liberty Financial and its executives have dismissed the allegations. Eric Trump called the lawsuit “ridiculous,” while co-founder Zach Witkoff characterized the claims as “entirely meritless,” suggesting that Sun’s legal action represents a “desperate attempt to deflect attention from Sun’s own misconduct.”
The company initially responded to Sun’s social media complaints with a terse post: “See you in court pal.”
Background
Sun’s investment came during World Liberty Financial’s early stages when the WLFI token was generating limited initial interest. The company’s fortunes shifted dramatically, with World Liberty Financial announcing in March 2025 that it had sold $550 million worth of its digital currency. Sun’s status as an early major investor and vocal supporter made his current legal challenge a significant escalation of their relationship.
The lawsuit reflects growing tensions within the cryptocurrency sector and raises questions about governance, investor protections, and the intersection of blockchain ventures with high-profile political figures.
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