Justin Sun Sues Trump-Backed Crypto Firm Over Alleged Extortion
Billionaire sues Trump co-founded crypto firm over extortion and ‘illegal scheme’
Hindustan TimesImage: Hindustan Times
Crypto billionaire Justin Sun has filed a lawsuit against World Liberty Financial, a crypto project co-founded by Donald Trump, alleging extortion and illegal actions to seize his tokens. Sun claims he suffered damages amounting to hundreds of millions of dollars due to the firm's actions, which he argues are jeopardizing the project's financial stability.
- 01Justin Sun alleges World Liberty Financial engaged in extortion and illegal actions.
- 02Sun claims to have invested $45 million in WLFI tokens and was awarded additional tokens for advisory services.
- 03The lawsuit highlights concerns about World Liberty's financial stability and its ability to back its USD1 stablecoin.
- 04Sun's relationship with World Liberty soured after he declined further investment.
- 05World Liberty has reportedly restricted Sun's ability to sell or transfer his tokens.
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Justin Sun, a prominent crypto billionaire, has initiated legal action against World Liberty Financial, a cryptocurrency project co-founded by US President Donald Trump, alleging extortion and an illegal scheme aimed at seizing his tokens. The complaint, filed in federal court in San Francisco, asserts that World Liberty is on the brink of collapse and questions its capacity to support its USD1 stablecoin. Sun invested $45 million to acquire 3 billion WLFI tokens between 2024 and 2025 and received an additional billion tokens for his advisory role. However, tensions escalated mid-last year when Sun refused to provide further investment, leading to hostile interactions between him and the World Liberty team. He claims that the company has unlawfully frozen his tokens, preventing him from selling them, and has threatened to burn them, which he estimates to be worth $776 million. Sun is seeking to unfreeze his tokens, monetary damages, and a court order to prevent World Liberty from further encumbering his assets. The lawsuit raises significant concerns about the financial viability of World Liberty, especially as it recently secured a loan using WLFI tokens as collateral.
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This lawsuit could affect investor confidence in World Liberty Financial and its ability to operate, potentially impacting early investors and the broader crypto market.
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More about World Liberty Financial

World Liberty Financial Responds to Justin Sun's Misconduct Allegations Amid Defamation Lawsuit
Coindesk • Apr 23, 2026

Eric Trump Criticizes Justin Sun's Lawsuit Against World Liberty Financial
Benzinga • Apr 23, 2026

Justin Sun Sues Trump-Backed World Liberty Financial Over Alleged Extortion
News 18 • Apr 23, 2026
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