Billionaire investor sues Trump-backed World Liberty Financial

Crypto billionaire Justin Sun has filed a lawsuit against World Liberty Financial, a digital asset platform backed by Donald Trump and his son Eric Trump, alleging an “illegal scheme” to seize his cryptocurrency holdings. Sun has claimed that WLFI tokens issued by World Liberty Financial have been wrongfully frozen, stripping him of both financial access and governance rights within the platform.

Allegations of token freezing and governance removal

In a complaint filed in a San Francisco federal court, Sun has alleged that World Liberty blocked him from accessing or trading his tokens, despite earlier assurances that holders would be able to participate freely in the market.

He further claims the company removed his ability to vote on governance proposals, effectively eliminating his influence over the project despite being one of its largest investors. Sun also alleges that the firm threatened to “burn” his tokens, permanently deleting them from circulation without justification.

Sun, founder of the TRON network, initially invested $45 million in the venture and claims his holdings were at timesvalued at more than $1 billion. However, the value of WLFI tokens has fallen sharply, dropping from around 31 cents in September to under 8 cents, raising concerns among investors about the project’s stability and governance.

World Liberty denies claims

World Liberty Financial has rejected the allegations, accusing Sun of attempting to deflect attention from his own misconduct. Co-founder Zach Witkoff said the claims were “entirely meritless” and that the company acted to protect its platform and users.

Sun, however, argued that certain individuals within the company were exploiting the Trump brand for financial gain, acting contrary to the broader values associated with the US president.

Wider political and regulatory context

The case adds to growing scrutiny around Trump-linked crypto ventures and their governance structures. Sun has been a vocal supporter of Trump’s pro-crypto stance and previously purchased $100 million worth of Trump-themed meme coins in 2025.

Meanwhile, regulatory questions continue to surface. The Securities and Exchange Commission recently dropped an investigation into Sun, prompting criticism from Senator Elizabeth Warren, who questioned whether his ties to Trump-affiliated projects influenced the decision.

Investor concerns mount

Additionally, concerns have emerged about World Liberty’s financial practices, including reports that the company has borrowed against the value of its tokens.

The controversy comes amid broader challenges for Trump-linked businesses. Shares in Trump Media & Technology Group, which operates the Truth Social platform, have fallen significantly over the past year, reflecting declining investor confidence.

WLFI’s launch and trajectory

Last year, Trump-backed WLFI announced plans to roll out a debit card that integrates with Apple Pay. The move was aimed at facilitating seamless retail transactions for USD1, the decentralised finance (DeFi) project’s native stablecoin. Additionally, it expanded the project’s reach into mainstream payment solutions.

WLFI’s native cryptocurrency has been under pressure since its launch on 1 September 2025. The token, which hoveredaround $0.20, was trading significantly lower than its debut. Market analysts have highlighted several key levels for WLFI. Popular crypto analyst CryptoBusy noted that the token slipped below its ascending trendline, signalling weakening momentum. 

In September last year, WLFI burned 47 million tokens in an effort to stabilise its market performance, but selling pressure persisted. WLFI co-founder Zak Folkman acknowledged the volatility, stating that WLFI will remain exposed to market fluctuations. However, he emphasised confidence in long-term growth as the project expands its ecosystem of products.