Tron Founder Sues Trump-Backed WLFI Over Frozen Tokens Worth $320M

Justin Sun's Tron Foundation has filed a federal complaint against World Liberty Financial (WLFI), accusing them of freezing 4 billion WLFI tokens worth approximately $320 million. The lawsuit, which was submitted to a California court on Tuesday, alleges that the company pressured Sun to mint $200 million of its USD1 stablecoin on the Tron blockchain.

The complaint claims that World Liberty Financial's leadership threatened to burn Sun's holdings outright and stripped his governance rights without a vote in September. This comes after Sun invested $45 million in 2024 and received an additional billion tokens as an advisor, according to the filing.

Zach Witkoff, the firm's chief executive and son of US envoy Steve Witkoff, has responded by calling the suit 'a desperate deflection' that lacks merit. Eric Trump also mocked the filing on X, comparing it to Sun's 2024 purchase of a $6.2 million duct-taped banana at Sotheby's.