Trump Family Cryptocurrency Venture Embroiled in Lawsuit Over Alleged Extortion

Billionaire investor Justin Sun has filed a lawsuit against World Liberty Financial (WLFI), a cryptocurrency venture linked to the Trump family, alleging extortion and breach of contract.

The company is accused of freezing Sun's digital assets, including his WLFI tokens, and stripping him of voting rights tied to governance decisions. According to Sun, early promises allowing token holders to trade WLFI in the future were 'false and misleading,' and he claims that trading was later permitted for others but not for him.

Sun initially invested $45 million in World Liberty Financial and had his WLFI holdings valued at over $1 billion at one point. However, since September last year, the token's price has dropped sharply from 31 cents to under 8 cents.

World Liberty Financial denied the allegations, accusing Sun of making 'baseless' claims to cover up his own misconduct. The case comes as scrutiny grows around World Liberty Financial's financial practices, including concerns from investors about borrowing against the value of its tokens.