Cryptocurrency billionaire Justin Sun has taken his dispute with Trump-linked crypto project World Liberty Financial to court, accusing the latter of extortion and using &#34;illegal means&#34; to freeze and destroy the token assets he holds, marking the formal entry of their long-simmering confrontation into judicial proceedings.
On Tuesday, Justin Sun filed a lawsuit in San Francisco federal court, alleging that World Liberty secretly granted itself the power to freeze his tokens, resulting in &#34;hundreds of millions of dollars in losses&#34; for him and his affiliated companies. The complaint further states that World Liberty is &#34;on the brink of collapse&#34; and questions whether the project holds sufficient reserves to support its USD1 stablecoin.
This case has brought to light the escalating conflict between World Liberty and its early investors, sparking widespread market skepticism regarding the financial health and governance mechanisms of the crypto project co-founded by current U.S. President Donald Trump. World Liberty declined to comment.
Justin Sun posted on social media platform X, stating, &#34;Regrettably, some individuals within the World Liberty project team operate in ways that contradict President Trump's values.&#34;
<h2>Investment Entry and Relationship Breakdown</h2>
According to the complaint, between 2024 and 2025, Justin Sun invested a total of $45 million to acquire 3 billion WLFI tokens from World Liberty and was additionally awarded 1 billion WLFI tokens for serving as an advisor to the project.
However, relations between the two parties took a sharp turn for the worse in mid-last year. The complaint alleges that after Sun refused to provide additional investment and support to the project, the World Liberty team began to change its attitude toward him. In recent weeks, both sides have engaged in public exchanges on the X platform, with tensions continuing to escalate.
The complaint states that World Liberty pressured Sun, demanding that he invest in the USD1 stablecoin and promote its use on the Tron blockchain, which Sun founded, while also &#34;attempting to force him to make an equity investment in the World Liberty holding company.&#34; When Sun clearly rejected these demands, &#34;the key figures at World Liberty began to take a hostile stance toward Mr. Sun.&#34;
<h2>Threats to Destroy Tokens, Sun Fights Back: This Is Extortion</h2>
The complaint details a series of unilateral manipulations by World Liberty over Sun's token assets.
According to the filing, World Liberty &#34;secretly installed permissions&#34; enabling it to freeze Sun's tokens and prevent their sale. The company also obtained the power to destroy Sun's tokens even when they were stored in his own digital wallet, while adding blacklist functionality to restrict token transfers by users.
The complaint further reveals that last November, World Liberty implemented a change allowing it to reallocate any user's WLFI tokens to others. Sun characterized these actions as &#34;illegal means&#34; targeting his assets.
World Liberty stated that part of the reason for freezing Sun's tokens was its dissatisfaction with his purchase of $100 million worth of Trump Memecoins.
<h2>Threats to Destroy Tokens, Extortion Allegations Surface</h2>
The most serious allegations in the complaint involve public threats made by World Liberty co-founder Chase Herro.
According to the filing, last September, Herro threatened to destroy the tokens held by Sun, which were then valued at approximately $776 million. At the same time, World Liberty threatened to report Sun to criminal authorities if he attempted to defend his rights. The complaint characterizes this coercive behavior as &#34;constituting criminal extortion per se.&#34;
The complaint also shows that World Liberty agreed in December last year to temporarily refrain from destroying Sun's tokens during negotiations, which continued until late February this year. Herro did not respond to requests for comment outside of normal working hours.
<h2>Financial Concerns and Questions Over USD1 Stablecoin</h2>
In the complaint, Justin Sun also directly questioned the financial health of World Liberty.
The complaint states that World Liberty &#34;appears to be facing financial difficulties.&#34; The project recently applied for loans collateralized by WLFI tokens. In response, World Liberty stated it possesses sufficient capital to avoid loan defaults.
Sun also raised questions about whether the USD1 stablecoin holds adequate reserves; if true, such an accusation would directly undermine the stablecoin's credibility.
In the complaint, Sun requested that the court unfreeze his tokens, order World Liberty to compensate for unspecified economic losses, and prohibit the company from destroying or otherwise disposing of his tokens.
This case reflects a broader investor situation: currently, 80% of tokens held by World Liberty's early investors remain non-tradable. It is reported that the project is considering a proposal to delay token trading access for at least two years; insiders within the project would face a longer waiting period under this plan.
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Cryptocurrency billionaire Justin Sun has filed a lawsuit against World Liberty Financial, a crypto project linked to Donald Trump, accusing it of extortion and freezing and destroying his token assets. Sun filed the suit in San Francisco federal court, alleging that World Liberty secretly granted itself the power to freeze his tokens, causing losses of hundreds of millions of dollars. The complaint questions the project's financial health and points out that relations between the two parties have deteriorated due to investment disputes. World Liberty has not responded to these allegations

- Billionaire crypto entrepreneur Justin Sun has taken legal action against World Liberty Financial, alleging extortion and illegal actions resulting in significant asset losses.  
- Sun claims World Liberty unlawfully froze and sought to destroy his tokens, after deteriorating relations following his refusal to make additional investments.  
- The lawsuit raises concerns about World Liberty's financial stability, particularly regarding its USD1 stablecoin and its purported lack of sufficient reserves.

Justin Sun Sues Trump-Linked Crypto Project, Alleging Extortion