Justin Sun Sues Trump-Backed WLFI Over Frozen Tokens Worth $320M
Justin Sun has filed a federal complaint in California against World Liberty Financial (WLFI), accusing the company of freezing around 4 billion WLFI tokens worth approximately $320 million. The Tron founder claims he invested $45 million in WLFI in 2024 and later received an additional billion tokens as an advisor.
According to the lawsuit, Sun alleges that World Liberty pressured him to mint $200 million of its USD1 stablecoin on the Tron blockchain and threatened to burn his holdings outright if he didn't comply. The company also stripped his governance rights without a vote in September.
Zach Witkoff, CEO of WLFI, dismissed the suit as 'a desperate deflection' with claims lacking merit. Eric Trump mocked Sun's lawsuit on social media, comparing it to his 2024 purchase of a $6.2 million duct-taped banana at Sotheby's.