Billionaire Justin Sun accused Trump's family of extortion. He invested millions in their cryptocurrency
According to Sun, World Liberty (co-founded by Trump himself and his son Eric) "froze" all tokens belonging to him and deprived him of his voting rights on company management issues.
Photo: Edwin Koo/Bloomberg via Getty Images
Billionaire and founder of the TRON cryptocurrency project Justin Sun has sued World Liberty Financial, a company owned by the family of US President Donald Trump, writes the BBC.
Sun accused World Liberty, which issues cryptocurrency, of extortion and implementing an "illegal scheme" to confiscate its issued WLFI tokens.
According to Sun, World Liberty (co-founded by Trump himself and his son Eric) "froze" all tokens belonging to him and deprived him of his voting rights on company management issues.
World Liberty rejected these accusations and stated that Sun "is trying to portray himself as a victim and is making baseless claims to hide his own unattractive actions."
Sun is known as a supporter of Trump and his cryptocurrency policies. However, he accused "some people" associated with World Liberty Financial of actions that contradict the values of the US President.
"They groundlessly froze all my tokens, took away my voting rights on governance proposals, and threatened to irreversibly destroy my tokens by 'burning' them without any legal justification," Sun stated on social media.
Sun is known as the founder of the TRON cryptocurrency project, which issues the Tronix cryptocurrency (it is not related to the activities of World Liberty Financial). The businessman initially invested $45 million in WLFI and stated that the value of the tokens he purchased reached over $1 billion.
However, since last September, the value of the WLFI token has fallen from 31 cents to less than 8 cents.
What are the accusations about?
Sun explained his participation in World Liberty by his long-standing support for cryptocurrency ventures and the fact that the company belongs to Donald Trump's family.
In July 2025, he also bought Trump's memecoins (cryptocurrency created by the US President) worth $100 million.
However, Sun claims that World Liberty managers, including another co-founder Chase Hera, see the company as a "golden opportunity to use the Trump brand to enrich themselves through fraud."
In his complaint, which was filed in San Francisco federal court on Tuesday, Sun writes that the company's promises to provide token holders with the ability to trade cryptocurrency in the future "were false and misleading."
Sun states that when the tokens became tradable, World Liberty Financial did not allow him to sell any of them, and now threatens to "burn" his cryptocurrency, completely destroying it.
Zach Witkoff, another co-founder of World Liberty Financial and son of Trump's special envoy Steve Witkoff, called Sun's lawsuit "a desperate attempt to distract from his own indecent actions."
"His claims have no basis, and World Liberty is prepared to ensure that the court quickly dismisses this case," said Zach Witkoff. He added that Sun was guilty of "misconduct that forced World Liberty to take measures for its own protection and the protection of its users."
"The only thing dumber than this lawsuit was spending $6 million on a banana taped to a wall with duct tape," Eric Trump added.
He is referring to the fact that at the end of 2024, Sun bought one of the most famous installations of recent years – Maurizio Cattelan's "Comedian" (which consists of a banana taped with duct tape) – for $6.2 million at a Sotheby's auction. Sun later ate the banana, calling it a "unique artistic experience."
Investors also raised concerns about World Liberty taking out loans backed by the value of its tokens.
Closed Investigation
The US Securities and Exchange Commission recently halted its investigation into Sun's activities. Democratic Senator Elizabeth Warren suggested that this decision might be linked to the businessman's involvement in Trump's cryptocurrency projects.
Accusations were made against Sun that he pays influencers to promote his companies on social media but does not publicly disclose such payments.
Meanwhile, the shares of another internet-related project by Donald Trump – his social network Truth Social – sharply declined in price. The company that owns the social network fired its CEO, former Californian Congressman Devin Nunes.
Over the past year, Trump Media & Technology shares have fallen by almost two-thirds. This firm has so far failed to attract a significant number of new users to the social network; Truth Social is mostly known as the place where Trump posts his messages.
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