Justin Sun Sues Trump-Linked Crypto Firm Over Token Freeze

Crypto entrepreneur Justin Sun has initiated legal action against World Liberty Financial, a cryptocurrency venture co-founded by President Donald Trump and his sons, alleging the firm unlawfully froze his digital tokens and deprived him of governance rights.

In the lawsuit filed in a California federal court, Sun claims that World Liberty Financial secretly implemented mechanisms to prevent the sale of his tokens after they became tradable in September 2025. He further alleges that the company threatened to permanently delete his holdings, even while they were in his digital wallet.

Sun, the founder of the Tron cryptocurrency, invested $45 million in World Liberty Financial's WLFI tokens between 2024 and 2025, acquiring approximately 3 billion tokens. He was later awarded an additional 1 billion tokens after being named an adviser to the project.

The lawsuit also alleges that World Liberty Financial representatives pressured Sun to invest additional capital, including requests to commit $200 million to the company's stablecoin, USD1. Sun claims that after he declined these requests, the company retaliated by freezing his tokens and stripping him of his voting rights on governance proposals.

World Liberty Financial has not publicly commented on the lawsuit. A spokesperson previously stated that Sun is not an adviser at the company and has never held an operational role.

This legal action follows a series of disputes between Sun and World Liberty Financial, including public exchanges on social media earlier this month. Sun has expressed concerns about the company's governance structure and transparency, while World Liberty Financial has accused Sun of misconduct.