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Justin Sun sued World Liberty Financial on Tuesday in federal court in California. He alleged that the Trump-linked crypto venture illegally froze his WLFI tokens after they became tradable in September 2025. He also claimed the company threatened to burn the holdings while they remained in his digital wallet.
Sun, the Hong Kong-based founder of Tron, said World Liberty installed tools that blocked sales of his tokens. He described himself in the lawsuit as one of the company’s anchor investors. Reuters calculations, based on the latest WLFI price, valued his 4 billion-token portfolio at about $320 million.
Sun said he bought 3 billion WLFI tokens for $45 million. Later, he received another one billion tokens after World Liberty named him as an adviser, according to the lawsuit. The complaint said those combined holdings later became restricted.
Once WLFI became tradable on Sept. 1, Sun said he could not sell. He alleged that World Liberty froze all of his tokens without proper justification. He also said the company stripped his right to vote on governance proposals.
In a social media post, Sun said he still supports Donald Trump. Even so, he blamed “certain individuals” for the dispute. He wrote that he did not believe Trump would condone the actions if he knew about them.
Sun’s complaint said WLFI saw weak early demand. It claimed the token generated only $22 million in sales during its first month. After Sun bought $45 million worth of WLFI, the lawsuit said more investors entered, and the company later raised about $550 million.
Sun argued that his support helped World Liberty gain momentum in its early phase. He said he backed the project as a major investor and public supporter. Then, once trading opened, he alleged the company blocked him from realizing any economic value.
The lawsuit said Sun and his businesses cannot unlock value from the tokens as long as the freeze stays in place. It added that the holdings had, at times, been valued at more than $1 billion. Since Sept.1, WLFI has lost about 25% of its value.
World Liberty Financial declined to comment on the lawsuit. Still, a company spokesperson said earlier this week that Sun is not an adviser at World Liberty Financial. The spokesperson also said he has never held an operational role in the company.
The White House did not immediately respond to a request for comment. Meanwhile, Sun’s complaint named World Liberty executives, including co-founder Chase Herro. It accused them of using the Trump brand to drive profits through what the lawsuit called a fraudulent scheme.
World Liberty stands out as one of several crypto ventures tied to the Trump family. Reuters reported that the family has already made more than $1 billion from the business. The company’s bylaws state that 75% of revenue from WLFI token sales goes to the Trumps.
Read More: Justin Sun Files Lawsuit Against World Liberty Financial Over Token Freeze Dispute
For months, some investors have raised complaints about transparency, governance, and unanswered community concerns, according to Reuters. World Liberty’s structure also limits what WLFI holders actually own.
The tokens Sun bought in 2024 do not represent standard company shares. They do not give holders ownership in the company or rights to dividends. Instead, they offer only a limited role in governance.
Justin Sun’s lawsuit against World Liberty Financial centers on frozen WLFI tokens, blocked sales, lost governance rights, and alleged burn threats. The dispute also brings fresh attention to the Trump-linked crypto venture’s structure, investor treatment, and wider concerns about transparency as scrutiny around the project grows.
