One of the recent developments in the crypto world is about the huge lawsuit between Justin Sun and World Liberty Financial, the decentralized finance initiative supported by the Trump family. Sun, known in the industry as the founder of TRON, applied to the Northern District Court of California last week and accused World Liberty Financial of illegally freezing approximately four billion WLFI tokens. The total value of these assets reaches 1 billion dollars.
Serious accusations from Sun, harsh response from World Liberty
In the documents submitted to the court, Sun stated that World Liberty made different accusations to him in private conversations, but did not provide concrete data to prove any of them. On the other hand, Eric Trump and Zach Witkoff, partners of World Liberty, denied the accusations in messages they shared on social media and claimed that this case was a “desperate attempt to change direction.”
In the company’s statement, it was emphasized that this lawsuit was only aimed at changing the agenda and that they would continue to protect the interests of their investors. Zach Witkoff also accused Justin Sun of serious improprieties.
Neither Witkoff nor the company made a clear statement about the details of these irregularities attributed to Sun. The company’s press spokesperson did not provide details about the allegations, leaving the guidance to social media posts.
WLFI Price Collapse and Disputes
According to Sun’s claims to the court, the World Liberty team blamed itself for the 40 percent loss of value on the first day the WLFI token started trading on the stock exchanges on September 1, 2025. However, Sun noted that there was no evidence that it triggered this decline and that most of the transactions in question were made after the price drop.
Another point of contention was that Sun allegedly attempted to drive the price down by shorting WLFI futures on a centralized exchange. Sun argued in the lawsuit he filed that this accusation was also baseless and pointed out that his transfers took place a few hours after the fall.
Trump Tokens and KYC Disputes
According to the documents, World Liberty also reacted to Sun receiving $100 million in TRUMP tokens for another Trump family-related project. However, Sun emphasized that this purchase was made with the approval of a partner who is an affiliate of the Trump family. The company also accused Sun of acting on behalf of third parties and transferring assets to exchanges such as Binance and HTX in violation of the token sale agreement.
There was also controversy regarding KYC (know your customer) procedures. In the court filing, World Liberty accused Sun of weak authentication processes, including firm partner Mr. It was reported that Herro threatened to report Sun to law enforcement in the United States several times, citing KYC violations. However, detailed information could not be obtained from the company about what the alleged deficiencies and accusations were.
World Liberty Financial stands out as a startup operating in the field of decentralized finance and in which the Trump family is among its partners. The company is known as one of the teams that has been investing aggressively in cryptocurrency-based projects recently. Justin Sun is a name that has made a name for itself in the crypto world with the TRON ecosystem.
Mutual accusations of the parties and the litigation process have brought to the agenda once again how critical management, transparency and legal processes are, especially in new generation crypto projects.
