Justin Sun Files Lawsuit Against World Liberty Financial Over Alleged Fraud and Insolvency Risks

World Liberty Financial, a company associated with Donald Trump, faces allegations of fraud and potential insolvency in a lawsuit filed by crypto mogul Justin Sun on Tuesday. The lawsuit claims the company’s operators, including Chase Herro, leveraged the Trump brand to profit through deception.

Despite his long-standing support for President Trump and the Trump family, Sun’s lawsuit states:

"Mr. Sun has long been (and remains) an ardent supporter of President Trump and the Trump family. But as Mr. Sun unfortunately has learned, World Liberty’s operators ... see the project as a golden opportunity to leverage the Trump brand to profit through fraud."

Feud Escalates Over Token Investments

Sun purchased 3 billion WLFI tokens in 2024 and 2025 for a combined $45 million, a move that temporarily revitalized the struggling company. However, the lawsuit alleges that World Liberty Financial executives sought to exert control over Sun by granting themselves the ability to freeze, transfer, and destroy the company’s tokens—a power they threatened to use against him.

The lawsuit also highlights a months-long conflict between Sun and World Liberty Financial, culminating in accusations of self-dealing and controversial transactions that have drawn regulatory scrutiny.

World Liberty Financial Denies Allegations

In response to the lawsuit, World Liberty Financial co-founder and CEO Zach Witkoff dismissed Sun’s claims as baseless.

"Justin Sun’s recent lawsuit against [World Liberty Financial] is a desperate attempt to deflect attention from Sun’s own misconduct," Witkoff said on X. "His claims are entirely meritless, and World Liberty looks forward to getting the case thrown out promptly."

Eric Trump, the president’s son and a co-founder of World Liberty Financial, also weighed in, calling the lawsuit "the only thing more ridiculous than spending $6 million on a banana duct-taped to a wall." He added, "We are incredibly proud of the [World Liberty Financial] team."

Trump Family’s Stake in World Liberty Financial

DT Marks DEFI LLC, a Trump family company, once held a 75% stake in World Liberty Financial. As of now, the company’s website states DT Marks holds a 38% stake. The Trump family and DT Marks received 22.5 billion WLFI tokens, with DT Marks entitled to 75% of the proceeds from token sales.

Sun’s investment in WLFI tokens was reportedly driven by the company’s association with Trump and its promise to promote decentralized finance. The lawsuit cites the company’s past claims, including:

"No one’s ever going to tell you that your account is shut down. No one’s ever going to tell you who ..."

A World Liberty Financial spokesperson reiterated these statements when contacted by DL News.