Justin Sun Files Crypto Lawsuit Against Trump Over Token Dispute

Billionaire crypto investor Justin Sun has filed a crypto lawsuit against World Liberty Financial. As a result, the dispute has escalated into serious claims of extortion. Consequently, the case has drawn wide attention across the crypto space.

According to court records, Sun filed the complaint on Tuesday in a San Francisco federal court. In the filing, he accuses the company of running what he calls an illegal scheme.

More importantly, he claims the firm tried to seize his WLFI tokens without cause. In addition, he alleges that the company froze his assets and removed his governance rights. Therefore, the dispute has quickly intensified.

World Liberty Financial, which Donald Trump and his son Eric Trump co founded, has rejected all claims. However, the accusations continue to raise concerns among investors and observers. At the same time, the company maintains its position.

Sun explained that he invested about 45 million dollars into the project. Initially, his holdings reportedly rose to over 1 billion dollars in value. However, despite this growth, he now says the company blocked him from selling his tokens. Furthermore, he claims the firm threatened to destroy them through a process known as burning. As a result, he believes his rights as an investor have been violated.

“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,” Sun stated in a social media post. Moreover, he argued that certain individuals tied to the project acted against the values linked to Donald Trump.

In response, World Liberty Financial pushed back strongly. Specifically, co founder Zach Witkoff dismissed the claims and described them as baseless. In contrast, he accused Sun of trying to distract from his own alleged misconduct. “His claims are entirely meritless, and World Liberty looks forward to getting the case thrown out promptly,” Witkoff said.

Meanwhile, Eric Trump reacted with sharp criticism. Notably, he mocked the lawsuit and referenced Sun’s past purchase of a conceptual artwork. That artwork featured a banana taped to a wall, which Sun later ate after buying it for millions at auction. Consequently, his remarks added a personal tone to the dispute.

Sun also raised concerns about earlier promises made to token holders. In particular, he claimed the company misled investors about future trading rights. While some WLFI tokens have entered the market, he said his own holdings remain locked. Therefore, he believes the firm has treated him unfairly.

At the same time, the value of WLFI tokens has dropped. Since September, the price has fallen from about 31 cents to under 8 cents. As a result, many investors now question the project’s stability. In turn, this decline has added more urgency to the situation.

Sun originally backed the venture because of Trump’s pro crypto stance. Additionally, he trusted the brand strength of the Trump family. However, the ongoing dispute now casts doubt on that decision.

In addition, the case has drawn attention to the company’s financial structure. For instance, some critics have raised concerns about borrowing against token value. Therefore, these issues continue to worry market watchers.

The situation also connects to broader regulatory interest in Sun. Recently, the US Securities and Exchange Commission dropped an investigation into him. Even so, some lawmakers remain skeptical. For example, Elizabeth Warren questioned whether political ties influenced that outcome.

Furthermore, Sun has faced earlier accusations involving undisclosed promotional activity with social media influencers. Although those claims remain separate, they still add context to the current dispute.