Crypto

Sun Sues Trump-Backed Venture Over Frozen Tokens Worth Billions

Guavy AI Editorial Team Published August 13, 2026

Instruments

TRX

Justin Sun, founder of Tron (TRX), has filed a federal complaint against World Liberty Financial, accusing the Trump-backed venture of freezing $4 billion worth of WLFI tokens.

Sun claims he invested $45 million in WLFI in 2024 and later received an additional billion tokens as an advisor. However, his wallet was allegedly frozen by WLFI in September without a vote, stripping him of his governance rights.

The complaint also alleges that World Liberty Financial pressured Sun to mint $200 million of its USD1 stablecoin on the Tron blockchain. Furthermore, company leadership is accused of threatening to burn Sun's holdings outright.

Zach Witkoff, CEO of WLFI and son of U.S. envoy Steve Witkoff, has dismissed Sun's lawsuit as a 'desperate deflection' with 'claims that lack merit.'

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