A dispute between Justin Sun and World Liberty Financial has escalated into a legal battle, with Eric Trump publicly criticizing the lawsuit.
Trump mocked the filing on social media, calling it more “ridiculous” than the widely known $6 million duct-taped banana artwork—marking a notable shift from his earlier praise of Sun.
The controversy stems from a complaint filed in California, where Sun alleges that World Liberty improperly froze roughly 4 billion WLFI tokens, valued at around $1 billion.
World Liberty dismissed the claims in an informal response, labeling the lawsuit a “desperate” tactic and emphasizing its focus on user protection. Co-founder Zach Witkoff accused Sun of “misconduct,” though the firm did not provide further details and declined additional comment.
In his filing, Sun argues that the company made a series of shifting and unsupported allegations against him in private communications.
According to the complaint, World Liberty blamed Sun for a roughly 40% drop in WLFI’s price on September 1, 2025, the token’s first day of trading, and accused him of driving the decline through short positions in perpetual futures. Sun rejects these claims, stating that his transactions took place after the steepest падение had already occurred.
The lawsuit also references World Liberty’s objections to Sun’s $100 million purchase of TRUMP tokens tied to another Trump-affiliated project. Sun maintains the transaction was approved by a Trump family member involved in both ventures.
Further allegations cited by the company include claims that Sun acted as a proxy buyer for other investors, made unauthorized transfers to exchanges including HTX and Binance, and submitted insufficient KYC documentation.
The filing adds that tensions peaked on September 25, 2025, when World Liberty associate Mr. Herro allegedly threatened to report Sun to U.S. authorities over unspecified compliance concerns—issues Sun says were never clearly clarified despite repeated requests.
