A cryptocurrency project linked to the family of US President Donald Trump is facing a lawsuit from billionaire investor Justin Sun, who accuses the company of improperly seizing control of his digital tokens and restricting his rights as a holder. Sun, a prominent figure in the cryptocurrency sector and founder of the TRON blockchain platform, has filed a complaint in federal court in San Francisco alleging that the firm behind the World Liberty Financial project engaged in what he described as an “illegal scheme” to take control of his holdings.
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The company has rejected the claims, describing the lawsuit as an attempt by Sun to divert attention from alleged misconduct on his part.
According to the lawsuit, Sun invested $45m (£33m) in the World Liberty Financial project and accumulated a large number of its WLFI tokens. At certain points, he said the value of his holdings exceeded $1bn.
Dispute over token control
Sun claims that company executives froze his tokens and removed his ability to participate in governance decisions tied to the cryptocurrency project. He also alleges the company threatened to permanently eliminate the tokens by “burning” them — a process that removes digital assets from circulation.
In a statement posted on social media announcing the legal action, Sun said the steps were taken without proper justification.
“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,” he wrote.
The lawsuit further alleges that early promises made to investors — including that token holders would eventually be able to trade their holdings freely — were misleading. While WLFI tokens later became tradable more broadly, Sun claims he has been prevented from selling any of his.
Company rejects allegations
World Liberty Financial has strongly denied the accusations.
Zach Witkoff, one of the project’s co-founders and the son of US Middle East envoy Steve Witkoff, said the claims were unfounded and that the company had acted to protect itself and its users.
“His claims are entirely meritless, and World Liberty looks forward to getting the case thrown out promptly,” Witkoff said, adding that Sun had engaged in conduct that required the company to intervene.
Eric Trump, who co-founded the project with his father, also dismissed the case. In a social media response, he mocked Sun by referencing the investor’s purchase of a conceptual artwork consisting of a banana taped to a wall.
In 2024, Sun bought the piece — created by artist Maurizio Cattelan — for around $6m and later publicly ate the banana.
Falling token value and investor concerns
The dispute comes amid a steep decline in the price of the WLFI token. Since September, its value has dropped from about 31 cents to just under eight cents.
Sun said he had backed the project partly because of its association with the Trump family and his own long-standing support for cryptocurrency. In July 2025 he also purchased $100m worth of meme coins linked to Donald Trump.
However, the lawsuit accuses some individuals involved with World Liberty Financial, including co-founder Chase Herro, of exploiting the Trump brand for personal gain.
Separately, some investors have raised concerns about the company borrowing against the value of its tokens.
Wider scrutiny of Trump-linked businesses
The case emerges as regulators and politicians continue to scrutinise cryptocurrency projects tied to prominent political figures.
The US Securities and Exchange Commission recently dropped an investigation into Sun related to allegations that influencers were paid to promote his crypto ventures without proper disclosure. Democratic Senator Elizabeth Warren has questioned whether the decision was connected to Sun’s investments in Trump-related crypto projects.
In a separate development, the company behind Trump’s social media platform Truth Social has replaced its chief executive, Devin Nunes, following a significant fall in the firm’s share price.
Kevin McGurn, a media executive who has previously worked at Hulu, Vevo and T-Mobile, has been appointed as interim chief executive. Over the past year, shares in Trump Media & Technology have lost nearly two-thirds of their value as the platform struggles to expand its audience beyond the US president’s supporters.
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Adapted by ASEAN Now. Source 23 April 2026
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