Sun Sues Trump-Backed WLFI Over Frozen 4B Tokens Worth $320M
Justin Sun, founder of Tron (TRX), has filed a federal complaint against World Liberty Financial (WLFI) in California. The lawsuit alleges that WLFI, backed by the Donald Trump family venture, froze approximately 4 billion WLFI tokens worth around $320 million at current prices.
Sun invested $45 million in WLFI in 2024 and received an additional billion tokens as an advisor, according to the complaint. He claims 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 did not comply.
WLFI has seen a significant decline in value, plummeting around 76% from its launch peak and trading near 8 cents. This represents a 44% year-to-date decrease in value for the token.
Zach Witkoff, WLFI's chief executive and son of U.S. envoy Steve Witkoff, dismissed Sun's lawsuit as 'desperate deflection' with claims lacking merit, according to NBC News. Eric Trump even mocked the filing on X, drawing a comparison between it and Sun's 2024 purchase of a $6.2 million duct-taped banana at Sotheby's.