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Sun Sues Trump's Crypto Firm Over $276 Million Token Freeze

On Tuesday, crypto entrepreneur Justin Sun sued World Liberty Financial in a California federal court, alleging the Trump-family-backed venture committed fraud and wrongfully froze his $WLFI token holdings.
Sun invested $45 million in 2024 to become a major advisor, citing support for decentralized finance and the Trump family; Eric Trump and Donald Trump Jr. oversee the venture and initially appointed him to establish credibility.
The complaint alleges World Liberty secretly blacklisted Sun's wallet and threatened to permanently "burn" his tokens to manipulate market prices after he refused to mint the firm's USD1 stablecoin on his TRON blockchain.
World Liberty dismissed the allegations as "baseless," while Sun stated he "tried in good faith to resolve this situation" before turning to courts; the dispute raises regulatory questions about the venture's centralized token control.
Sun's lawsuit claims the venture is on the "brink of collapse" with insufficient reserves; this escalation follows a controversial governance proposal published April 15 that would indefinitely lock tokens of non-compliant holders.

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Crypto investor Justin Sun sues Trump’s World Liberty Financial over ‘misconduct’

Billionaire crypto mogul Justin Sun, who has invested tens of millions of dollars in President Donald Trump’s family’s various crypto ventures, has sued World Liberty Financial, one of the Trump family crypto firms. In a lawsuit filed Tuesday, Sun alleged that World Liberty Financial illegally…

13 hours ago

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