Tron Founder Sues Trump-Backed WLFI Over Frozen Tokens Worth $320M
Justin Sun's Tron Foundation has filed a lawsuit against World Liberty Financial (WLFI), accusing the company of freezing approximately 4 billion WLFI tokens, worth around $320 million at current prices. The lawsuit was filed in a California federal court on Tuesday.
Sun invested $45 million in WLFI in 2024 and later received an additional 1 billion tokens as an advisor, according to the complaint. He claims that World Liberty pressured him to mint $200 million of its USD1 stablecoin on the Tron blockchain and threatened to burn his holdings outright if he didn't comply.
WLFI has seen a significant decline in value since its launch, with its price dropping about 76% from its peak. The company's leadership has denied Sun's claims, calling them 'desperate deflection' and saying they lack merit.