Justin Sun Sues Trump Crypto Firm World Liberty Financial Over Alleged Extortion

Billionaire Justin Sun Takes Trump Crypto Venture to Court

Crypto billionaire Justin Sun has filed a lawsuit against World Liberty Financial. The Trump family’s crypto venture now faces serious legal pressure. Sun alleges the firm ran an “illegal scheme” to seize his digital tokens. He filed the complaint on Tuesday in a San Francisco federal court.

World Liberty Financial launched in 2024. US President Donald Trump and his son Eric Trump co-founded it. Zach Witkoff, Alex Witkoff, Chase Herro, and Zak Folkman also co-founded the firm. Steve Witkoff, Trump’s Middle East envoy, is the father of Zach and Alex.

Sun is the founder of TRON, a separate multi-billion dollar crypto project. He initially invested $45 million in World Liberty Financial. His WLFI tokens once held a value exceeding $1 billion. He also purchased $100 million of Trump’s meme coins in July 2025.

What Sun Alleges Against World Liberty

Sun accuses World Liberty of freezing every one of his WLFI tokens. He says the firm stripped him of all voting rights on governance matters. World Liberty now threatens to “burn” his tokens, which means deleting them entirely. Sun argues the firm took all these steps without any proper justification.

Sun posted his grievances publicly on social media before filing the suit. He stated that certain project team members acted against President Trump’s values. He made clear he does not believe Trump would approve of these actions. Sun positioned his fight as a defence of Trump’s ideals, not an attack on the president himself.

He also accused co-founder Chase Herro of exploiting the Trump brand for personal gain. Sun described World Liberty as a “golden opportunity to leverage the Trump brand to profit through fraud.” That is a striking claim from a man who proudly backed the venture. Sun’s legal challenge now separates his loyalty to Trump from his dispute with the co-founders.

Token Value Collapses as Legal Battle Begins

The financial backdrop to this case is grim. A single WLFI token traded at 31 cents in September. That price has since plunged to just under 8 cents. The sharp decline adds financial weight to Sun’s grievances about his blocked investment.

Sun argues World Liberty made false promises to token-holders from the start. The firm pledged that holders would gain the option to trade their tokens in the future. Those tokens did eventually become tradeable for the general public. However, Sun says World Liberty blocked him specifically from selling a single token.

That selective restriction sits at the heart of his extortion allegations. Sun invested heavily based on stated terms and the Trump family’s involvement. He now argues those initial promises were “false and misleading.” The San Francisco federal court will hear those arguments as the case proceeds.

World Liberty Fires Back at Sun

World Liberty Financial flatly denied any wrongdoing. The company accused Sun of “playing the victim” to hide his own misconduct. Co-founder Zach Witkoff responded sharply to the lawsuit. He called Sun’s legal action a “desperate attempt to deflect attention from Sun’s own misconduct.”

Witkoff stated that Sun had engaged in misconduct requiring World Liberty to act. He said the firm took steps to protect itself and its users. “His claims are entirely meritless,” Witkoff said. He added that World Liberty expects the court to throw out the case promptly.

Eric Trump also commented on the lawsuit. He dismissed it with a reference to a famous art piece. “The only thing more ridiculous than this lawsuit is spending $6 million on a banana duct-taped to a wall,” Eric Trump said. That banana reference pointed to a Maurizio Cattelan artwork that Sun famously purchased and then ate.

A High-Profile Backer Turns Adversary

Sun’s move against World Liberty marks a dramatic shift. He entered the venture as one of its most prominent and vocal supporters. His $45 million investment signalled enormous confidence in the project. He also spent $100 million on Trump meme coins, deepening his ties to the Trump brand.

Sun stated clearly that his initial support came from Trump’s personal association with the project. He described himself as a long-standing supporter of cryptocurrencies. He aligned himself with Trump’s pro-crypto political stance. The lawsuit now puts those financial ties under severe strain.

Sun’s complaint draws a careful line between Trump personally and the co-founders. He insists the alleged misconduct comes from certain individuals on the project team. He frames his legal action as consistent with, not contrary to, Trump’s stated values. That framing attempts to limit political damage while pursuing legal redress.

What Happens Next in the Case

The San Francisco federal court will now handle the proceedings. Sun seeks relief over his frozen tokens and blocked trading rights. He also challenges the threat to permanently destroy his holdings. The case raises broader questions about governance within crypto ventures tied to political figures.

World Liberty Financial insists it acted correctly in every respect. The firm says Sun’s own behaviour triggered the protective measures it took. Both sides are now preparing for a legal confrontation. The outcome could shape how investors view politically branded crypto projects going forward.

The case also highlights the volatility of crypto investments. Sun’s tokens once carried a paper value exceeding $1 billion. They now trade at a fraction of their peak price. Regardless of the court’s eventual decision, the lawsuit reveals deep fractures inside one of the most high-profile crypto ventures of the Trump era.