Tron Founder Justin Sun Sues Trump-Backed WLFI Over Frozen Tokens Worth $320M
Justin Sun, founder of the Tron (TRX) blockchain, has taken World Liberty Financial (WLFI), a venture backed by the Trump family, to court over frozen tokens worth an estimated $320 million.
Sun invested $45 million in WLFI in 2024 and later received an additional billion tokens as an advisor. However, his wallet was allegedly frozen in September without a vote, stripping him of his governance rights.
The complaint filed in California federal court claims World Liberty pressured Sun to mint $200 million of its USD1 stablecoin on the Tron blockchain, and threatened to burn his holdings outright if he did not comply.
Zach Witkoff, chief executive of World Liberty, dismissed the lawsuit as a 'desperate deflection' with claims that lack merit. Eric Trump even mocked the filing on social media platform X, comparing it to Sun's 2024 purchase of a $6.2 million duct-taped banana at Sotheby's.
The WLFI token has plummeted about 76% from its launch peak and now trades near 8 cents, down 44% year-to-date. At current prices, Sun's 4 billion token stash is worth around $320 million, although it once topped $1 billion.