Billionaire investor Justin Sun has filed a fraud lawsuit against the Trump family's cryptocurrency venture World Liberty Financial (WLF), alleging that his multi-million dollar investment was secured through fraud and that the company is on the verge of collapse. Sun claims his tokens have been indefinitely frozen and his voting rights revoked after he refused to accept a new governance proposal requiring 10 percent of all company advisers' tokens to be permanently burned.
Details of the lawsuit
In a 52-page complaint filed with the U.S. District Court for the Northern District of California on Monday, Sun—an adviser to WLF—states that he lawfully purchased $45 million worth of WLF tokens in 2024, which at times were valued at over $1 billion. He asserts that his investment was a pivotal moment for the venture, providing a public vote of confidence when it was struggling with lackluster demand.
Sun says he was motivated to invest because of WLF's claims to promote decentralized finance and the Trump family's association with the project, describing himself as a long-time ardent supporter of President Donald Trump and his family.
Allegations of fraud
However, Sun claims he soon became disenchanted, alleging that WLF's operators treated the project as a golden opportunity to leverage the Trump brand for profit through fraud. He says he was made a prime target of their fraudulent scheme, resulting in hundreds of millions of dollars in damages. The complaint accuses WLF of making false statements, inducing investments through fraud, misrepresenting legal compliance, improperly freezing his tokens, making threats, and defamation.
Sun further alleges that WLF is on the verge of collapse and severe financial insolvency, planning to pay up to 95 percent of token sale proceeds to company insiders.
Legal demands
Sun and his companies are seeking a jury trial and aim to force WLF to unfreeze his tokens and prevent them from being seized, burned, destroyed, or encumbered. They also seek damages and costs.
The Independent has reached out to the Trump Organization for comment.
Sun's statement
In a post on X, Sun clarified that he continues to support Trump personally but believes certain individuals on the World Liberty project team have operated in a manner contrary to Trump's values. He excused the president, who is WLF's chief crypto advocate, stating he does not believe Trump would condone these actions if he knew about them.
Sun, born in China but a citizen of St. Kitts and Nevis with a home in Hong Kong, founded Tron. His company was reportedly investigated by the Department of Justice and Treasury's Financial Crimes Enforcement Network during the Biden era over concerns about its popularity among illicit actors. The Securities and Exchange Commission had also charged him with fraudulent market manipulation.
However, The Wall Street Journal noted that his fortunes improved after investing in WLF, leading the SEC to drop charges in February 2025 and other inquiries to cease. Sun has denied any wrongdoing and said his involvement was not politically motivated.
Background on WLF
Since Trump's return to power last year, WLF has faced accusations of conflicts of interest and vulnerability to foreign influence. Hunter Biden recently invoked it to attack the Trumps, saying their hypocrisy knows no bounds.
