Tron Founder Sues Trump-Backed Firm Over Frozen Token Stash
Justin Sun has filed a federal complaint against World Liberty Financial (WLFI), alleging that the company, backed by the Trump family, froze roughly 4 billion WLFI tokens. The Tron founder claims he invested $45 million in WLFI in 2024 and later received an additional billion tokens as an advisor.
Sun's complaint states that World Liberty pressured him to mint $200 million of its USD1 stablecoin on the Tron blockchain. He also claims company leadership threatened to burn his holdings outright.
Zach Witkoff, WLFI's chief executive and son of U.S. envoy Steve Witkoff, dismissed Sun's lawsuit as a 'desperate deflection.' 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.
The value of Sun's token stash has plummeted from over $1 billion to roughly $320 million due to WLFI's 76% decline in value since its launch peak.