TLDR
- Justin Sun has filed a federal lawsuit against World Liberty Financial (WLFI), alleging that his WLFI tokens worth about $1 billion were illegally frozen.
- Sun claims he was stripped of voting rights and threatened to permanently “burn” his tokens
- The World Liberty Sun organization accused “misconduct” but did not provide details of the accusations
- An outside investor, the CEO of Samir Group, has publicly offered to mediate the dispute
- The SEC recently dropped its separate investigation into Sun
Justin Sun, founder of the Tron blockchain and main backer of Donald Trump’s cryptocurrency project World Liberty Financial, has filed a lawsuit against the company in federal court in California. Sun claims that the company illegally froze nearly four billion WLFI tokens worth approximately $1 billion.
Sun initially invested $45 million in World Liberty and later bought $100 million worth of Trump coins in July 2025. At its peak, his holdings in WLFI were worth more than $1 billion. Since September 2025, the price of the WLFI token has fallen from 31 cents to less than 8 cents.
She claims the sun Universal freedom Freeze all its codes without justification. He says he was also stripped of his rights to vote on governance proposals and was threatened with having his tokens permanently destroyed through a process called “burning.”
Sun says he tried to resolve the dispute in private before going to court. When those efforts failed, he filed a complaint in the Northern District of California.
What universal freedom claims
The World Freedom Organization publicly rejected the lawsuit, calling it “useless” and “desperate.” Co-founder Zach Witkoff accused Sun of misconduct that forced the company to act to protect itself and its users, although neither he nor the company explained the reason for this misconduct.
The recent lawsuit filed by Justin Sun v @worldlibertyfi It is a desperate attempt to divert attention from Sun’s misbehavior. His allegations are completely baseless, and World Liberty looks forward to having the case dismissed immediately.
He has engaged in misconduct that requires the world…
– Zach Witkoff (@ZachWitkoff) April 22, 2026
Co-founder Eric Trump was more blunt. He compared the lawsuit to the infamous $6 million banana mounted on the wall, a piece of art that Sun actually bought and ate in 2024.
The only thing more ridiculous than this lawsuit is spending $6 million on a wall-mounted banana. We are incredibly proud of @worldlibertyfi a team… https://t.co/ahfBKvCdwN
-Eric Trump (@EricTrump) April 22, 2026
According to Sun’s complaint, World Liberty specifically blamed it for the WLFI token’s 40% price collapse on September 1, 2025, the first day it became tradable. The company also accused him of short-selling futures contracts on a central exchange, something Sun denies.
Universal freedom He separately objected to his purchase of $100 million worth of Trump coins, though Sun said a Trump family member who is a partner in both projects approved the deal.
Payment for settlement
The company also accused Sun of acting as an unofficial buyer for other investors, making unauthorized transfers to the HTX and Binance exchanges, and submitting insufficient KYC documents.
On September 25, 2025, co-founder Chase Herro allegedly threatened to report Sun to US criminal authorities over KYC issues that Sun says were never clearly explained to him.
A separate dispute involves WLFI’s governance proposal from April 15. Sun opposes it, saying he can lock tokens to holders who reject his terms — but he can’t vote on it because his voting rights have been removed.
Syed Samir, CEO of Samir Group LLC, has publicly offered to mediate the situation. His group and partners in the UAE manage more than $300 million of WLFI’s combined properties. He posted on X that he was willing to help Sun unlock his tokens and settle the matter without a long legal battle.
World Liberty has yet to file a formal response in court.
