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

Justin Sun's Tron blockchain has been embroiled in controversy after he sued World Liberty Financial (WLFI), a Donald Trump-backed venture, over frozen tokens worth $4 billion.

The lawsuit was filed in a California federal court on Tuesday, with Sun claiming that WLFI froze his wallet and stripped him of governance rights without a vote in September.

Sun had invested $45 million in 2024 and later received an additional 1 billion WLFI tokens as an advisor. He alleges that WLFI 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.

WLFI's CEO, Zach Witkoff, son of US envoy Steve Witkoff, dismissed the lawsuit as 'desperate deflection' and claimed that Sun's claims lack merit. Eric Trump mocked the filing on X, comparing it to Sun's 2024 purchase of a $6.2 million duct-taped banana at Sotheby's.