- Tron founder Justin Sun is suing leadership at the World Liberty Financial project, accusing them of unjustly freezing his WLFI tokens.
- The feud escalated last week when the project threatened legal action against Sun following his accusations of a “secret backdoor” in its system.
- Sun initially invested about $75 million into the Trump-linked project in late 2024 and early 2025.
On Wednesday morning, Tron founder Justin Sun announced a lawsuit against the leadership of the Trump-affiliated cryptocurrency project World Liberty Financial. He alleges the project unjustly froze his WLFI governance tokens and stripped his voting rights.
“They wrongfully froze all of my tokens, stripped me of my right to vote on governance proposals, and have threatened to permanently destroy my tokens,” Sun said. He claimed these actions were taken without proper justification by the project’s team.
World Liberty Financial was launched in 2024 and co-founded by members of former President Donald Trump‘s family and the sons of billionaire Steve Witkoff. President Trump is listed as a co-founder emeritus in its marketing materials.
Sun bought approximately $75 million worth of WLFI tokens shortly before the SEC paused an investigation into him over alleged securities violations. That case was later settled in March 2026 when he agreed to pay a $10 million penalty, according to reports.
Consequently, the relationship between Sun and the project’s leadership has deteriorated significantly. This legal threat follows the project’s own warning of legal action against Sun last week over what it called his “baseless allegations.”
On April 12, Sun alleged the WLFI team implemented a secret backdoor to control assets and treated “the crypto community as a personal ATM.” His tokens were frozen in September after he transferred $9 million worth to his own HTX exchange.
Meanwhile, the WLFI token has fallen nearly 80% from its October 2025 peak, with the project’s market capitalization now around $2.5 billion. World Liberty Financial declined to comment for this story.
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