Justin Sun sues World Liberty Financial over frozen $1B in tokens

Justin Sun filed a lawsuit on Tuesday in U.S. federal court in California against World Liberty Financial, the crypto venture co-founded by former President Donald Trump and his sons. Sun alleges the company froze his digital tokens, which he values at up to $1 billion, after he refused to provide additional funding.

The complaint says World Liberty Financial blocked Sun from selling or transferring the tokens and pressured him to put hundreds of millions more into the project to mint USD1, a stablecoin tied to the venture. Sun contends the restrictions were imposed directly after he declined to increase his investment.

The suit names World Liberty Financial and other defendants linked to the project. There was no formal legal response from World Liberty Financial or the Trump family on the court docket at the time of filing.

On X, Eric Trump mocked the lawsuit, posting, “The only thing more ridiculous than this lawsuit is spending $6 million on a banana duct-taped to a wall. We are incredibly proud of the @worldlibertyfi team.” The post drew critical replies from several crypto users.

An account identifying itself as an OKX partner, using the name Ashley, replied, “The only thing more ridiculous than this lawsuit is that the Trump family has grifted $1 billion off of the crypto community while telling everyone that they are pushing crypto forward.” Crypto influencer MASTR posted, “You are liars, scammers, and the scum of humanity.” Other users called for locked funds to be released to token holders.

The complaint focuses on control and transfer limits placed on Sun’s token holdings and seeks relief through the federal court. It alleges World Liberty Financial conditioned any sale or transfer of his tokens on further capital contributions tied to the stablecoin plan.

The dispute occurs amid broader activity by the Trump family in crypto. Donald Trump launched a meme token called $TRUMP the day before his inauguration; the token is down more than 95% from its January 2025 high. The family has held investor events tied to the token, and a gathering at Mar-a-Lago is scheduled for Saturday.

The case will proceed through the federal court system, where subsequent filings and any formal responses from World Liberty Financial or the Trump family will be recorded.