Tron's Justin Sun Sues World Liberty Financial After $75M in WLFI Tokens Are Frozen

Tron founder Justin Sun has sued World Liberty Financial (WLFI), the Trump-backed decentralized finance project, in federal court in California, claiming the platform froze his WLFI token holdings worth about $75 million without proper disclosure. The complaint, filed April 22, alleges that an undisclosed smart-contract feature was used to freeze Sun's position of roughly 2.9 billion WLFI tokens. World Liberty Financial says the action was a standard security step affecting hundreds of wallets and was not aimed specifically at Sun. Sun first invested $30 million in the project in late 2024 ahead of the WLFI token's public launch, becoming one of its most visible early backers and later serving as an advisor. By early 2025, he had increased his exposure to an estimated $75 million. The dispute escalated in September 2025 when WLFI froze the wallet holding 540 million unlocked WLFI tokens and 2.4 billion locked tokens. Sun argues the project embedded a hidden "backdoor blacklisting function" that would allow the issuer to freeze or effectively seize investor tokens without prior notice. He has previously criticized the move publicly as running counter to decentralization. Sun's lawsuit asserts multiple claims, including breach of contract, fraudulent inducement, conversion, unjust enrichment, and seeks declaratory relief. He is asking the court to compel WLFI to unfreeze his tokens immediately, award damages to be determined at trial, and bar the project from burning, destroying, or otherwise tampering with his holdings. Sun disclosed the filing on X, writing: "Today, I filed a lawsuit in California federal court against World Liberty Financial to protect my legal rights as a holder of WLFI tokens. I have always been, and remain, an ardent supporter of the project." World Liberty Financial has not indicated it will unfreeze the tokens. The case lands amid heightened scrutiny because WLFI is one of the most prominent crypto ventures linked to the Trump family. A federal fraud complaint from a major early investor, centered on alleged undisclosed smart-contract controls and the risk of destroying token holdings, raises significant legal and reputational stakes. WLFI has also previously threatened its own legal action against Sun, accusing him of misconduct as the conflict intensified.