Justin Sun Sues WLFI Over Fraud and Frozen Tokens

Justin Sun, the founder of the Tron blockchain, filed a lawsuit on April 16, 2025, in the U.S. District Court for the Northern District of California against World Liberty Financial, a decentralized finance project backed by members of President Donald Trump's family. The complaint accuses the company of fraudulently inducing his investments, wrongfully freezing his substantial holdings of WLFI tokens, stripping his governance rights, and threatening to permanently burn the assets.

Sun alleges he initially invested 30 million in WLFI in late 2024, drawn by the project's promises of decentralized finance innovation and its Trump family ties. He later increased his stake to about 75 million, acquiring around 540 million unlocked tokens and 2.4 billion locked ones, and served as an advisor. The suit claims WLFI solicited further investments, including minting its USD1 stablecoin on Tron's network, but turned hostile when Sun declined to commit additional funds on their terms.

According to the filing, WLFI modified its smart contract in August 2025 to include an undisclosed blacklisting function, allowing the company to freeze specific wallets without a governance vote or investor...