Justin Sun Sues WLFI Over Frozen $45M Tokens, Investor Steps In to Mediate

Controversial Tron founder Justin Sun has filed a lawsuit against World Liberty Financial (WLFI), accusing the Trump-linked firm of illegally freezing his $45 million worth of WLFI tokens.

The partially redacted lawsuit, filed in a California federal court, alleges breaches of contract, unjust enrichment, fraudulent misrepresentations, and conversion.

Today, I filed a lawsuit in California federal court against World Liberty Financial to protect my legal rights as a holder of $WLFI tokens. I have always been—and remain—an ardent supporter of President Trump and his Administration’s efforts to make America crypto friendly.…
— H.E. Justin Sun (@justinsuntron), April 22, 2026

Notably, Justin Sun is also an advisor to WLFI.

Investor Offers to Help Resolve Dispute

The legal action has drawn the attention of Sameer Group LLC, an investment firm based in the US, India, and the United Arab Emirates, which invested $25 million in WLFI’s ICO pre-sale.

The firm’s CEO, Syed Sameer, stated:

We are ready and willing to broker a fair resolution to [Sun’s] situation and have your tokens unlocked. Our UAE institutional partners will work to avoid a lengthy litigation process.

Sun claims he attempted to persuade WLFI to unfreeze his tokens but was left with no alternative but to pursue legal action.

All I want is to be treated the same as every other early investor who received tokens — no better, no worse.
— Justin Sun on X

Allegations of Extortion and Fraud

Sun’s lawsuit asserts that World Liberty’s operators, including Chase Herro, viewed WLFI as a chance to profit through fraud by leveraging the Trump brand.

A heavily redacted section of the lawsuit claims WLFI extorted plaintiffs and attempted to use “plaintiffs’ property rights as a bargaining chip to extort Mr. Sun into providing additional capital for World Liberty.”

Trump Family’s Role in WLFI

The Trump family is central to WLFI’s branding. Donald Trump is listed as the firm’s “chief crypto advocate,” while his sons Eric, Donald Jr., and Barron are named as co-founders. Previously, they served as Web3 ambassadors.

This lawsuit threatens Sun’s long-standing relationship with the Trump administration, which he has sought to distance himself from.

This lawsuit does not change how I feel about President Trump or the Trump Administration.
— Justin Sun

Governance and Defamation Concerns

Sun alleges he was unfairly locked out of governance votes after WLFI froze and refroze his tokens via a secret “blacklisting” smart contract update.

He also fears WLFI may follow through on alleged threats to burn his tokens through a governance proposal he cannot vote on.

The lawsuit further claims WLFI made defamatory statements against Sun, accusing him of theft and misappropriating tokens.