Trump-Linked WLFI Sues Tron Founder Justin Sun Over Frozen Tokens

World Liberty Finance (WLFI), a cryptocurrency venture linked to the Trump family, has initiated a legal counterattack against Tron founder Justin Sun. The company accuses Sun of making false statements about the frozen tokens held by entities affiliated with him.

The dispute began when WLFI froze tokens linked to Sun before its public trading launch. Sun claims that this action prevented him from selling and voting on governance matters, while WLFI argues that the tokens were subject to transfer restrictions from the start.

WLFI's complaint alleges that Sun engaged in market misconduct, including straw purchases and short-selling activities, despite his advisory role and large locked-token position. The company points to a series of transfers on August 31, 2025, when an HTX-associated wallet allegedly moved three blocks of USDT worth around $100 million each to a Binance deposit address less than 24 hours before WLFI began public trading.

The case has drawn attention due to World Liberty's ties to the Trump family and Sun's own regulatory history. In March, Sun reached a $10 million settlement with the Securities and Exchange Commission (SEC) in a civil case alleging fraud, unregistered crypto securities sales, and undisclosed celebrity promotions.