Tron founder Justin Sun has filed a federal lawsuit against World Liberty Financial, the crypto venture backed by the Trump family. He wants a California court to unfreeze his WLFI tokens and stop the project from seizing, burning, or further restricting them.
Sun says he invested tens of millions of dollars into WLFI after being invited in as a major early backer and adviser in 2024. By early 2025, he held at least $75 million in WLFI, making him the largest known investor in the project. Now he alleges the team has “unreasonably” locked his position and stripped him of the rights that should come with that stake.
According to the complaint, Sun accuses World Liberty of wrongful token freeze, fraudulent misrepresentation, defamation, and running “an illegal scheme to seize property” from him via smart‑contract changes.
The suit even notes that Sun publicly supported Trump, which he argues makes the project’s treatment of him look even more like bad‑faith conduct.
Blacklist “backdoor” and Threats over WLFI Tokens
At the center of the case is a 2025 update to the WLFI token contract that allegedly added a hidden blacklist function.
The Tron founder billionaire says this change gave World Liberty unilateral power to freeze, restrict, and effectively confiscate any holder’s tokens without a vote, notice, or clear cause. He says the team never disclosed the modification to investors, even while WLFI promoted itself as a decentralized DeFi project.
This lawsuit alleges that World Liberty used the blacklist to freeze 595 million of Sun’s unlocked WLFI in September 2025, soon after Sun moved about $9 million worth of tokens. As the WLFI coin price later collapsed, Sun’s frozen position reportedly fell from more than 100 million dollars in value to under half that amount, leaving him unable to sell or hedge.
Sun also alleges that co‑founder Chase Herro twice threatened his holdings and reputation. In one instance, Herro allegedly said he would burn Sun’s WLFI unless Sun publicly asked for the burn himself. In another, the complaint says Herro accused Sun of submitting inadequate KYC documents, implying possible wrongdoing without basis.
World Liberty has pushed back publicly, accusing Sun of breaching his investor agreement and “playing victim” while making baseless claims. The team says it froze the wallet as a security measure triggered by suspicious transfers, not as a secret power grab.
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