A legal clash between Justin Sun and World Liberty Financial has spilled into public view, drawing in Eric Trump as tensions escalate.
Trump ridiculed the lawsuit on social media, saying it was even more “ridiculous” than the viral $6 million duct-taped banana artwork—a stark contrast to his supportive comments about Sun less than a year ago.
The dispute centers on a complaint filed Monday in California federal court, where Sun alleges World Liberty unlawfully froze roughly 4 billion WLFI tokens worth about $1 billion.
World Liberty pushed back in an informal response, calling the lawsuit a “desperate” move and reiterating its commitment to protecting users. Co-founder Zach Witkoff accused Sun of “misconduct,” though no details were provided. The company declined further comment, referring to statements made by its founders online.
Sun’s filing paints a different picture, claiming the firm privately made a series of unsubstantiated and shifting allegations against him.
Among them, World Liberty allegedly blamed Sun for a roughly 40% سقوط in WLFI’s price on September 1, 2025—the token’s debut trading day—and accused him of shorting perpetual futures to drive the decline. Sun denies the claims, noting that his transactions occurred after the sharpest drop had already taken place.
The complaint also highlights tensions over Sun’s $100 million purchase of TRUMP tokens linked to another Trump-backed venture. Sun says the deal was approved by a Trump family member connected to both projects.
Additional accusations outlined by World Liberty include claims that Sun acted as a proxy buyer for other investors, conducted unauthorized transfers to exchanges such as HTX and Binance, and submitted insufficient KYC documentation.
According to the filing, the dispute intensified on September 25, 2025, when World Liberty associate Mr. Herro allegedly threatened to report Sun to U.S. authorities over unspecified compliance issues—concerns Sun says were never clearly explained despite repeated requests.
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