Justin Sun Sues Trump-Backed WLFI Over Frozen $4 Billion Tokens

Justin Sun, founder of Tron (TRX), has filed a federal complaint against World Liberty Financial (WLFI) in California. The lawsuit alleges that WLFI froze around $4 billion worth of WLFI tokens from Sun's wallet without his consent. According to the complaint, Sun invested $45 million in 2024 and later received an additional billion tokens as an advisor.

The project allegedly pressured Sun to mint $200 million of its USD1 stablecoin on the Tron blockchain. Company leadership threatened to burn his holdings outright if he did not comply.

WLFI's chief executive, Zach Witkoff, son of U.S. envoy Steve Witkoff, called the suit a 'desperate deflection' and said the claims lack merit.