Tron's Justin Sun Sues Trump-Backed Venture Over Frozen Tokens

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

Sun claims that World Liberty Financial stripped his governance rights without a vote and froze his wallet in September. He also accuses the company's leadership of threatening to burn his holdings outright. The complaint alleges that Sun invested $45 million in 2024 and later received an additional billion tokens as an advisor for WLFI.

Zach Witkoff, the firm's chief executive and son of U.S. envoy Steve Witkoff, has responded to the lawsuit by calling it a 'desperate deflection' with claims that lack merit. 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.