Unhappy with malicious token freezing! Justin Sun sues World Liberty Financial

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In the cryptocurrency market, even super-whales who invest heavily can face the predicament of being "harvested" by project teams. Justin Sun, founder of the Tron blockchain, has officially filed a lawsuit against World Liberty Financial, a cryptocurrency project endorsed by the Trump family, accusing the project of maliciously freezing his $WLFI tokens, allegedly making fraudulent misrepresentations, and even subjecting him to personal threats and defamation. Lured by the Trump aura, a $45 million investment turns into a lamb for the slaughter Behind this lawsuit lies a complex web of political and commercial interests. The complaint specifically mentions Justin Sun's support for Donald Trump and accuses World Liberty Financial executives of orchestrating a "conspiracy to illegally seize assets" with the intent to misappropriate the massive amount of tokens held by Justin Sun. Justin Sun stated that these tokens were purchased in 2024 after being lobbied by the World Liberty Financial team. The complaint reads: At a critical moment in the development of World Liberty Financial, Mr. Sun invested $45 million to purchase $WLFI tokens. This was not only because the project claimed it would promote the adoption of DeFi — a core philosophy Mr. Sun has dedicated his life to — but also because he valued the deep ties between the Trump family and the project. Regarding this lawsuit, a spokesperson for World Liberty Financial stated they have "no comment." Failed push for their own stablecoin leads to a sharp deterioration in relations The trigger for the fallout between the two parties stemmed from subsequent investment pressure. The complaint reveals that World Liberty Financial demanded that Justin Sun continue to increase his investment in 2025, even explicitly requesting that he issue World Liberty Financial’s USD stablecoin (USD1) on the Tron chain. However, "When it came to July 2025, and World Liberty Financial realized that Mr. Sun was unwilling to invest further or issue USD1 under their terms, the leaders of World Liberty Financial began to harbor hostility toward Mr. Sun." Justin Sun's legal team pointed out that World Liberty Financial set a trap from the beginning, using concealment and fraudulent misrepresentations to lead investors to believe that purchasing $WLFI tokens would grant them corresponding economic and governance rights, thereby inducing Justin Sun to invest. These so-called fraudulent statements include: statements regarding token holder rights, various public statements by World Liberty Financial or its executives regarding governance rights, and statements regarding "freedom of trade." Fake decentralization, real centralization? Justin Sun further revealed in the complaint that although World Liberty markets itself as a decentralized finance (DeFi) project, it actually holds extreme centralized control over the tokens. The complaint points out that in August 2025, World Liberty Financial quietly tampered with the smart contract of the $WLFI token, privately adding a "blacklist" function that allows the company to arbitrarily freeze tokens in specific wallets. Outrageously, this major modification was never put to a community vote, nor was it disclosed to investors; this occurred at the same time that token holders had just voted to pass a proposal allowing some tokens to be traded freely. Although this upgrade was publicly visible on the blockchain, World Liberty Financial deliberately buried it deep within the code without alerting token holders to its existence or potential impact. In this way, the company created a "blacklist" function in the dark that could be used at will. Two main purposes for freezing Justin Sun's tokens? The complaint alleges that World Liberty Financial had two purposes for freezing Justin Sun's tokens: first, to coerce Justin Sun into issuing $200 million worth of USD1 stablecoins on the Tron chain; second, to manipulate the price of $WLFI by preventing large whales from dumping their holdings. The complaint asserts that World Liberty Financial's malicious freezing of Justin Sun's tokens is essentially "artificial price support" to keep the tokens held by the project founders and the company treasury at a high price. The complaint mentions that World Liberty Financial's power to issue, freeze, and even reallocate tokens at will not only runs counter to the philosophy of "decentralization" but may also trigger regulatory issues, potentially leading the U.S. Financial Crimes Enforcement Network (FinCEN) to classify World Liberty Financial as a "money transmitter," subject to registration and Anti-Money Laundering (AML) regulations. The complaint also documents "two blatant threats" issued by World Liberty Financial against Justin Sun and his company. It is alleged that World Liberty Financial co-founder Chase Herro threatened that if Justin Sun did not "voluntarily" request the destruction of his $WLFI tokens, he would forcibly destroy them. Furthermore, Chase Herro falsely accused Justin Sun's team of submitting non-compliant KYC documents when purchasing the tokens and threatened to report him to U.S. authorities. Currently, large portions of this complaint have been redacted. According to the attachment, this is because Justin Sun's team is complying

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