TRON Founder Sues "Trump's WLF for Freezing Crypto Assets and Forcing Additional Investments" [Bitcoin Now]
Justin Sun, the founder of TRON and a cryptocurrency billionaire, has filed a lawsuit against World Liberty Financial (WLF), a cryptocurrency project associated with the family of U.S. President Donald Trump. Sun claims that WLF unfairly froze his crypto assets and pressured him to make additional investments.
According to foreign media outlets such as the Wall Street Journal (WSJ) and the Financial Times (FT) on April 22 (local time), Sun stated in a complaint filed with the U.S. District Court in California that the WLF management "is attempting to exploit the Trump brand for fraudulent gains."
According to the complaint, Sun was a major investor who purchased approximately $45 million worth of 'WLFI,' a cryptocurrency issued by WLF right after Trump’s 2024 re-election. However, WLF allowed other early investors to sell their tokens in September last year but froze Sun’s holdings, citing issues such as insufficient Know Your Customer (KYC) verification.
Sun's side claims these actions were retaliatory. WLF reportedly demanded that Sun purchase hundreds of millions of dollars worth of its own stablecoin, 'USD1,' and promote it within the TRON network. When Sun refused, they restricted the transfer of WLFI. In particular, Sun’s legal team argued that WLF’s threat to “report him to U.S. authorities if he filed a lawsuit” constituted “criminal extortion in itself.” Sun claims that the freeze caused him to lose approximately $276 million in potential profits.
By contrast, WLF CEO Jack Witkoff countered on social media platform X (formerly Twitter), saying, “Sun’s claims are entirely baseless,” and called them “a desperate attempt to deflect attention from his own wrongdoing.” Eric Trump also commented on social media, referencing art recently purchased by Sun, stating, “The only thing more absurd than this lawsuit is spending $6 million on a banana taped to a wall.”
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The co-founders of WLF include Donald Trump Jr. and Eric Trump, sons of U.S. President Donald Trump, as well as the sons of Steve Witkoff, the U.S. Special Envoy to the Middle East. President Trump also reported receiving personal income from this business.
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