Justin Sun Files Federal Lawsuit Against World Liberty Financial Over Frozen WLFI Tokens

Tron founder Justin Sun posted on X on April 22 that he filed a lawsuit in California federal court against World Liberty Financial (WLFI), the DeFi project backed by Donald Trump and his family.

Sun wrote that the WLFI team wrongfully froze his tokens, stripped him of his right to vote on governance proposals, and threatened to permanently destroy the tokens by burning them.

While confronting WLFI, Sun separated President Trump from the dispute, saying he remains a supporter of Trump and the administration's crypto agenda and blaming specific individuals on the project team instead.

Sun's Opposition To The April 15 WLFI Governance Proposal On Token Burns And Vesting

In the same post, Sun wrote he strongly opposes the governance proposal WLFI published on April 15. The proposal requires 10% of all advisor tokens to be permanently burned and imposes a two-year cliff, followed by a two-year vesting schedule, on early-purchaser tokens.

He claims that holders who do not “affirmatively accept” the new terms will have their tokens locked indefinitely, calling the proposal bad for the community, and said that because WLFI has frozen his early investor tokens, he cannot vote for or against it.

Sun closed the post by saying he still supports President Trump and the administration's crypto agenda, and attributed the dispute to specific individuals on the project team rather than Trump himself.

Sun Still Supports Trump And Blames The Project Team For The Dispute

A large part of Sun's post is aimed at putting distance between President Trump and the people running World Liberty Financial day-to-day. Sun wrote that he has always been, and remains, an ardent supporter of President Trump and the administration’s efforts to make America crypto-friendly, and that the lawsuit does not change his feelings about Trump or the administration.

According to him, certain individuals on the WLFI project team have been operating the project in a way that goes against Trump's values. Sun added that he does not believe President Trump would condone the team's actions if he knew about them. He framed the case as a fight for fairness and transparency rather than a political attack, writing that all he wants is to be treated the same as every other early investor who received tokens, no better and no worse.

Sun Lawsuit Filing Details And WLFI Token Holdings Frozen By World Liberty Financial

The case was filed in the U.S. District Court for the Northern District of California. According to the 52-page complaint, Sun and several of his corporate entities filed against World Liberty Financial, with Blue Anthem Limited and Black Anthem Limited, two British Virgin Islands companies, listed as co-plaintiffs.

The complaint lists breach of contract, fraud in the inducement, conversion, unjust enrichment, and declaratory relief as causes of action. Sun is asking the court to order WLFI to unfreeze his tokens, pay damages to be determined at trial, and block the project from burning, destroying, or further encumbering his holdings.

Sun first invested in WLFI in late 2024 and later took on an advisor role. The lawsuit states that he invested $45 million in WLFI tokens between November 2024 and January 2025 and received an additional 1 billion tokens as an advisor. Reporting put his total WLFI position at around $75 million, with about 540 million unlocked tokens and 2.4 billion locked tokens in the affected wallet.

The lawsuit alleges that WLFI secretly installed tools to prevent the sale of his tokens after they became tradable in September 2025. Sun has called the mechanism a “backdoor blacklisting function” that was never disclosed to investors.

The September 2025 WLFI Tokens Freeze

The freeze of Sun’s WLFI tokens happened in September 2025, shortly after on-chain activity showed outgoing transfers from Sun's wallet, including one worth about $9 million. World Liberty Financial has said the freeze was a routine security measure and not targeted at Sun.

In an earlier exchange on X, the WLFI team accused Sun of “playing the victim while making baseless allegations to cover up his own misconduct” and told him, “See you in court, pal.”

Eric Trump And Zach Witkoff Push Back On The Justin Sun Lawsuit

The World Liberty Financial responded to the lawsuit on X the same day. Zach Witkoff, co-founder and CEO of World Liberty Financial and son of real estate investor and Trump Middle East envoy Steve Witkoff, wrote that Sun's lawsuit is a desperate attempt to deflect attention from Sun's own misconduct.

Witkoff called the claims entirely meritless and said World Liberty looks forward to getting the case thrown out promptly. He wrote that Sun engaged in misconduct that required World Liberty to take action to protect itself and its users, and said the project will continue to take all necessary steps to protect its community.

Eric Trump, son of President Donald Trump and one of the family members actively involved in managing World Liberty Financial, reposted Witkoff's message with his own comment.

He wrote that the only thing more ridiculous than the lawsuit is spending $6 million on a banana duct-taped to a wall, a reference to the Maurizio Cattelan artwork, and added that he is incredibly proud of the World Liberty team. Neither Witkoff's post nor Eric Trump's response addressed the specific allegations in the complaint, including the claim that the WLFI smart contract contains an undisclosed blacklisting function.