Billionaire businessman Justin Sun has initiated legal proceedings against World Liberty Financial (WLF), a cryptocurrency venture associated with the Trump family. In a detailed 52-page complaint filed with the U.S. District Court for the Northern District of California, Sun asserts that his substantial investment in WLF, totaling $45 million, was gained through fraudulent practices, putting the venture on the brink of collapse.
Sun, known for founding Tron, claims that since he rejected a new governance proposal on April 15, which mandated the permanent burning of 10 percent of company advisers’ tokens, his assets have been indefinitely frozen, and his voting rights revoked. His involvement with WLF, overseen by Donald Trump Jr. and Eric Trump, was based on the hope of aiding in the project’s promotion of decentralized finance—a concept he has long supported.
Initially optimistic, Sun alleges that he became disillusioned with the company’s operations, accusing WLF’s management of exploiting the Trump brand to enrich themselves through deceitful means. According to the complaint, WLF is not only in a precarious financial state but has also purportedly planned to allocate the majority of its token sale proceeds—up to 95 percent—to insiders, raising serious ethical concerns.
The lawsuit paints a picture of WLF engaging in fraudulent practices, including issuing false statements and coercively securing further capital from Sun. He and his companies are now seeking a jury trial to unfreeze his assets and prevent the company from further manipulating or disposing of them.
Despite the ongoing litigation, Sun has sought to distance Donald Trump from the alleged mismanagement of WLF, claiming his support for the former president remains intact. He emphasized that he does not believe Trump would approve of the tactics employed by certain individuals within the venture.
Born in China and currently a citizen of St. Kitts and Nevis, Sun’s business practices have drawn scrutiny; the Department of Justice and the Treasury’s Financial Crimes Enforcement Network had previously investigated him. However, after his entrance into the WLF project, charges by the Securities and Exchange Commission against Sun for market manipulation were dismissed.
Sun’s lawsuit adds to the growing concerns regarding WLF’s influence and integrity, particularly in light of recent accusations of potential conflicts of interest surrounding the Trump family’s financial dealings in the cryptocurrency space. The Independent has reached out to the Trump Organization for a comment but has yet to receive a response.
