Billionaire crypto entrepreneur Justin Sun has filed a lawsuit against World Liberty Financial, a cryptocurrency venture linked to the Trump family, accusing the company of an “illegal scheme” to seize and restrict access to his digital assets.
World Liberty Financial, co-founded by US President Donald Trump and his son Eric Trump, has denied the allegations and described the claims as baseless.
In a complaint filed in a San Francisco federal court on Tuesday, Sun alleges that the company froze his WLFI tokens, stripped him of governance voting rights, and threatened to permanently destroy his holdings through a process known as “burning.”
“They wrongfully froze all of my tokens, stripped me of my right to vote on governance proposals, and have threatened to permanently destroy my tokens by ‘burning’ them,” Sun said in a social media post announcing the lawsuit.
Sun, the founder of the TRON blockchain project, initially invested $45 million in World Liberty Financial and claims his holdings were at times valued at over $1 billion. However, he says he has been blocked from selling any of his tokens despite earlier promises of future trading access.
World Liberty Financial has strongly rejected the claims, accusing Sun of attempting to deflect attention from his own alleged misconduct.
“His claims are entirely meritless, and World Liberty looks forward to getting the case thrown out promptly,” said co-founder Zach Witkoff, son of US Middle East envoy Steve Witkoff. The company also accused Sun of “playing the victim.”
Eric Trump also dismissed the lawsuit, comparing it to what he called “ridiculous” spending decisions, referencing Sun’s past purchase of a banana duct-taped to a wall artwork.
Sun has been a vocal supporter of Trump’s crypto policies and previously invested $100 million in Trump-related meme coins. However, he now alleges that World Liberty executives are exploiting the Trump brand for financial gain.
The lawsuit claims early promises that WLFI tokens would eventually become freely tradable were misleading, and that restrictions placed on Sun were unjustified.
The legal dispute comes amid wider concerns over World Liberty Financial’s governance and token valuation, with WLFI prices reportedly falling sharply in recent months.
Meanwhile, regulatory scrutiny around Sun has eased after the US Securities and Exchange Commission reportedly dropped its investigation into him.
The case adds further attention to the growing overlap between US politics, celebrity-linked crypto ventures, and digital asset regulation.
