- Justin Sun filed a lawsuit against World Liberty, linked to Donald Trump's family, for alleged misconduct
- Sun claims World Liberty froze his WLFI tokens and revoked his governance voting rights without cause
- Sun accuses the project of using the Trump brand to commit fraud and misleading early investors
A legal dispute has erupted around a crypto venture linked to the family of Donald Trump, with billionaire entrepreneur Justin Sun accusing the firm of serious misconduct, including “extortion”, BBC reported.
According to a lawsuit filed in a San Francisco federal court, Sun has alleged that World Liberty, a cryptocurrency project co-founded by Trump and his son Eric Trump, engaged in an “illegal scheme” to seize his holdings of WLFI tokens.
He claims the company froze his assets, revoked his governance voting rights, and threatened to permanently destroy his tokens.
“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 by ‘burning' them — all without any proper justification,” Sun said in a social media post announcing the lawsuit.
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Despite being a vocal supporter of Trump and a major backer of the venture, Sun alleged that certain individuals involved in World Liberty were exploiting the Trump brand “to profit through fraud.”
He further claimed that promises made to early investors — including the ability to freely trade tokens — were “false and misleading.”
World Liberty has denied all allegations, countering that Sun is “playing the victim while making baseless allegations to cover up his own misconduct.”
The controversy comes amid a sharp decline in WLFI's value, which has dropped from 31 cents in September to under 8 cents.
Concerns have also surfaced among investors about the firm's financial practices, including borrowing against token valuations.
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