Justin Sun Files Lawsuit Against World Liberty Financial Over $WLFI Token Dispute

Tron founder Justin Sun has initiated legal action against World Liberty Financial, a crypto and stablecoin company reportedly backed by members of former U.S. President Donald Trump’s family. The lawsuit centers on allegations that the firm unfairly restricted access to Sun’s $WLFI tokens, engaged in misleading practices, and damaged his reputation through threats and defamatory claims.

According to the complaint, Sun invested $45 million in $WLFI tokens in 2024 after being approached by the company. His decision was influenced by the project’s promise to support decentralized finance (DeFi) adoption and its high-profile political connections. However, tensions escalated when Sun declined further investment requests, including participation in minting the firm’s USD1 stablecoin.

The lawsuit claims that World Liberty Financial misrepresented the rights associated with its tokens, including governance participation and transaction freedom. Sun alleges that despite branding itself as a decentralized platform, the company maintained centralized control over token operations. A key issue highlighted is a smart contract modification in August 2025 that introduced a “blacklisting” feature, allowing the firm to freeze tokens without investor approval or proper disclosure.

Sun argues that freezing his tokens served strategic purposes, including pressuring him to mint up to $200 million worth of USD1 and artificially stabilizing the token’s market price. By restricting one of the largest holders from selling, the company allegedly influenced the token’s valuation to benefit its founders and treasury holdings.

The case also raises potential regulatory concerns, suggesting that World Liberty’s control over token issuance and transfers could classify it as a money transmitter under U.S. financial regulations. Additional claims include threats from company leadership, including warnings about burning Sun’s tokens and reporting him to authorities over alleged compliance issues.

Sun has stated that he attempted to resolve the dispute amicably and seeks fair treatment comparable to other early investors. Meanwhile, World Liberty Financial has declined to comment publicly on the ongoing legal battle.