Billionaire Crypto Entrepreneur Sues Trump-Linked Digital Currency Venture
Billionaire crypto entrepreneur Justin Sun has initiated legal action against World Liberty Financial, a digital currency venture co-founded by former President Donald Trump and his sons. The lawsuit, filed in a federal court in California, alleges that the company illegally froze Sun's substantial holdings of WLFI tokens after they became tradeable.
Allegations of Secret Tools and Threats
In the court documents, Sun claims that World Liberty Financial secretly installed tools to prevent the sale of his tokens in September 2025. The lawsuit further asserts that the company threatened to "burn" – or permanently delete – his holdings, even while they were stored in his personal digital wallet. Sun, based in Hong Kong and founder of the Tron cryptocurrency, describes himself as "one of World Liberty's anchor investors" in the filing.
According to the lawsuit, Sun purchased $45 million worth of WLFI tokens, approximately 3 billion, and was later awarded an additional 1 billion tokens after being appointed as an adviser to the company. His total portfolio of 4 billion WLFI tokens is valued at roughly $320 million, based on Reuters calculations using the latest token prices.
Dispute Over Role and Transparency
World Liberty Financial has declined to comment on the ongoing lawsuit. However, a spokesperson stated earlier this week that Sun "is not an advisor at World Liberty Financial, and he has never held an operational role in the company." The White House did not immediately respond to requests for comment regarding the matter.
This legal action marks a significant breakdown in relations between Sun and the Trump-linked venture. In September, Sun publicly claimed that his token holdings had been frozen, and earlier this month, he alleged on social media platform X that World Liberty had embedded a "backdoor blacklisting function" in the blockchain contracts. He argued this gave the company "unilateral power" to freeze or restrict token holders' assets without cause.
Broader Context and Investor Concerns
World Liberty Financial is noted as the most prominent among several lucrative crypto businesses associated with the Trump family, which has reportedly earned over $1 billion from the venture. The company's bylaws specify that 75% of revenue from WLFI token sales is directed to the Trumps. Recently, the firm has faced growing scrutiny from investors who have raised concerns about:
- Lack of transparency in operations
- Centralized governance structures
- Failure to address community complaints effectively
It is important to note that WLFI tokens do not equate to traditional company shares. Holders do not own part of the company or receive dividends, though they have limited governance input.
Attempts at Resolution and New Proposals
Sun stated on X that he attempted to resolve the issue in good faith but that World Liberty refused to unfreeze his tokens or restore his rights. Meanwhile, the company proposed a measure last week that would restrict early investors, holding a combined 17 billion tokens, from trading all their tokens until 2030 – a year after Trump's scheduled departure from office. Sun opposes this proposal but claims he cannot vote on it due to the freeze on his tokens.
Additionally, Sun has invested heavily in Trump's meme coin, and Trump has promoted crypto-friendly policies since returning to the White House in January 2025. In a related note, the Securities and Exchange Commission settled a 2023 lawsuit against Sun for $10 million over allegations of fraud and unregistered securities, though Sun admitted no wrongdoing.
