Justin Sun Sues Trump-Backed WLFI Over Frozen Tokens Worth $320M

Tron founder Justin Sun has filed a lawsuit against World Liberty Financial (WLFI), accusing the company of freezing roughly 4 billion WLFI tokens. The complaint, which landed in a California federal court on Tuesday, alleges that WLFI pressured Sun to mint $200 million of its USD1 stablecoin on the Tron blockchain.

Sun invested $45 million in WLFI in 2024 and received an additional billion tokens as an advisor. However, he claims that the project froze his wallet in September and stripped his governance rights without a vote. The complaint also alleges that company leadership threatened to burn his holdings outright.

WLFI has seen its token value plummet by about 76% from its launch peak and now trades near 8 cents, with a year-to-date loss of 44%. Sun's 4 billion token stash is worth roughly $320 million at current prices, though it once topped $1 billion. Eric Trump, the son of Donald Trump, mocked the lawsuit on X, comparing it to Sun's purchase of a duct-taped banana at Sotheby's.