Money Grab/Sell Trump products from the White House
Justin Sun sues World Liberty Financial, saying it froze his WLFI tokens
On April 21, 2026, Sun sued the Trump family’s World Liberty Financial in federal court in San Francisco, saying it froze his WLFI tokens in September 2025 with a function in the coin’s own contract, stripped his governance rights and pressed him for more money. The suit came six weeks after the SEC dropped its case against him.
What happened
Justin Sun began investing in World Liberty Financial in late 2024, buying about $45 million of WLFI tokens, some 3 billion, and later receiving another 1 billion for serving as an adviser. Press accounts round his total commitment to $75 million. World Liberty is the Trump family’s crypto venture.
In September 2025, after WLFI became tradable, the company froze a wallet holding more than 500 million of Sun’s tokens, according to his complaint. It used a blacklist function built into the token’s own contract, after analysts flagged transfers routed through HTX, an exchange Sun advises. Sun says World Liberty then stripped his governance rights, leaving him unable to vote on an April 15, 2026 proposal restructuring token unlocks.
On April 21, 2026, Sun and his companies sued in federal court in San Francisco, accusing World Liberty of extortion and an “illegal scheme” to seize his tokens. The complaint says the company threatened to burn his tokens and report him to U.S. authorities for KYC violations unless he kept investing, and questions the reserves behind its USD1 stablecoin. Zach Witkoff, World Liberty’s chief executive, called the claims meritless and a bid to deflect from Sun’s own conduct. The case is pending.
Who benefited
World Liberty Financial held Sun’s tokens, valued at roughly $320 million at filing, while cutting off his rights to them, according to the complaint. The company is run by Zach Witkoff with Eric Trump and Donald Trump Jr. among its principals. These are allegations.
Who wanted something
Sun wanted his tokens unfrozen and his vote restored, and said he still supported Trump personally. He filed six weeks after the SEC ended its fraud case against him.
Who lost out
Sun, if his account holds, lost control of more than 500 million tokens. Every other WLFI holder learned that the company can freeze any holder’s tokens with a function written into the contract, and holds a token already down more than 80% from its peak.
Why it matters
The president’s family business is accused in federal court of using control of its own coin to lock up a foreign investor’s stake and press him for more money. The complaint says the company threatened to report him to U.S. authorities, which answer to the president. The company denies it.