Justin Sun, WLFI’s largest holder, alleges fraud, token freezes, undisclosed blacklist powers and token upgrades, while World Liberty Financial says the action was taken to protect users and denies wrongdoing.
World Liberty Financial’s WLFI token fell about 3% in 24 hours to a record low of $0.0761, according to CoinGecko, as controversy deepened over a lawsuit filed by Justin Sun, also referred to as Sun Yuchen. The Tron founder and WLFI’s largest holder alleges that World Liberty Financial executives used undisclosed blacklist powers and token upgrades to freeze his holdings, strip voting rights, threaten to burn tokens, and engage in fraud, theft, and unlicensed money transmission. According to the filing, Sun says he invested $45 million to buy 3 billion WLFI tokens in 2024 and 2025, received 1 billion more for advising the project, and later saw his address blacklisted on September 4, 2025. The complaint also links the dispute to his reported $100 million purchase of TRUMP tokens and raises concerns about reserves backing World Liberty Financial’s USD1 stablecoin. Eric Trump and Zack Witkoff rejected the allegations as meritless, saying the freeze was intended to protect users. As of the report, WLFI was down more than 75% from its $0.33 peak on September 1, 2025.