Billionaire Justin Sun Sues Trump Family Crypto Firm World Liberty Over Alleged Token Seizure
Justin Sun, founder of the multi-billion dollar TRON crypto project, alleges that World Liberty has "wrongfully frozen" all of his WLFI tokens and stripped him of his ability to vote on governance proposals. Furthermore, Sun claims the firm has threatened to "burn" his tokens, effectively deleting them, without justification. He initially invested USD#45 million in World Liberty, with his WLFI holdings at one point valued at over USD#1 billion.
Sun's backing for World Liberty was reportedly driven by the Trump family's association and his support for cryptocurrencies. He also purchased USD#100 million in Trump meme coins in July 2025. However, the price of a single WLFI token has seen a significant decline, falling from 31 cents to under 8 cents since September.
The lawsuit accuses individuals running World Liberty, including co-founder Chase Herro, of leveraging the "Trump brand to profit through fraud." Sun contends that initial promises of future tradability for token-holders were "false and misleading." While other tokens became tradeable, Sun states he has been blocked from selling his, facing threats of their destruction.
World Liberty has denied the allegations, accusing Sun of "playing the victim while making baseless allegations to cover up his own misconduct." Concerns have also been raised by other investors regarding World Liberty borrowing against the value of its tokens.
Separately, the US Securities and Exchange Commission recently dropped its investigation into Sun, prompting questions from Senator Elizabeth Warren regarding potential links to his investments in Trump's crypto ventures. Sun had previously faced accusations of failing to disclose payments for promoting his companies on social media.
Concurrently, the Trump Media & Technology Group, responsible for the Truth Social platform, replaced its chief executive, Devin Nunes, following a substantial fall in its share price. Kevin McGurn, with experience at Hulu, Vevo, and T-Mobile, will serve as interim CEO. Shares in Trump Media & Technology have depreciated by nearly two thirds over the past year, as the platform struggles to expand its user base beyond Donald Trump himself, who frequently uses it for public announcements.
