World Liberty Financial and Justin Sun Clash Over $1 Billion Token Freeze

A legal battle has erupted between World Liberty Financial, the DeFi venture backed by the Trump family, and Tron founder Justin Sun. Sun filed a complaint in the Northern District of California, alleging that the firm illegally froze approximately 4 billion $WLFI tokens, which are valued at roughly $1 billion. The dispute marks a sharp turn in the relationship between the parties. While Eric Trump previously expressed support for Sun, the company now characterizes the lawsuit as a 'desperate' attempt to divert attention from Sun's own alleged misconduct. Co-founder Zach Witkoff stated that the claims are entirely meritless and the company expects the case to be dismissed promptly. According to the court filing, World Liberty has accused Sun of contributing to a 40% price collapse of the $WLFI token on September 1, 2025, the first day the token became tradable. The firm allegedly claimed Sun drove the price down by short-selling perpetual futures on centralized exchanges, an accusation Sun denies, noting that his transfers occurred after the steepest price drop. Furthermore, the company has raised concerns regarding Sun's KYC documentation and alleged prohibited transfers to exchanges including Binance and HTX. Sun also addressed a $100 million purchase of $TRUMP tokens from a separate project, asserting that the transaction received approval from a Trump family partner involved in both ventures. While the legal proceedings continue, World Liberty maintains a significant treasury, holding 11,509 BTC valued at approximately $880 million based on a Bitcoin price of $78,000.