Tron Founder Sues Trump-Backed Firm Over Frozen Tokens

Justin Sun's Tron has launched a federal lawsuit against World Liberty Financial (WLFI), accusing it of freezing around 4 billion WLFI tokens worth approximately $320 million at current prices. The complaint, filed in a California court on Tuesday, alleges that World Liberty pressured Sun to mint $200 million of its USD1 stablecoin on the Tron blockchain.

Sun initially invested $45 million in WLFI and later received an additional billion tokens as an advisor, according to the lawsuit. However, his wallet was allegedly frozen by World Liberty in September without a vote, stripping him of his governance rights.

WLFI's chief executive, Zach Witkoff, has responded to the suit, calling it 'a desperate deflection' and stating that the claims lack merit.

Eric Trump, son of U.S. envoy Steve Witkoff, mocked the filing on social media, comparing it to Sun's 2024 purchase of a $6.2 million duct-taped banana at Sotheby's.