New York 23 April 2026 (The Capital Post) – Cryptocurrency entrepreneur Justin Sun has initiated legal action against World Liberty Financial, a digital asset project linked to former US President Donald Trump, accusing the firm of engaging in extortion and attempting to unlawfully seize his crypto holdings.
In a lawsuit filed in a federal court in San Francisco, Sun alleged that the company carried out an “illegal scheme” to freeze his tokens, effectively restricting his ability to access or sell the assets. He also raised concerns about the project’s financial stability, questioning whether it has sufficient reserves to support its USD1 stablecoin.
Sun, who invested approximately US$45 million into the project, claimed he was allocated billions of WLFI tokens, including additional units granted for an advisory role. The dispute escalated after relations between both parties deteriorated, with Sun accusing the firm of applying pressure tactics tied to further investment demands.
The lawsuit also alleges that the token restrictions were used as leverage against him, with claims that the company sought to force additional financial commitments while limiting his rights as an investor.
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World Liberty Financial has denied wrongdoing, maintaining that its actions were justified and aimed at protecting the platform and its users. The case highlights growing tensions within politically linked cryptocurrency ventures and raises broader concerns over governance, transparency, and investor protections in the digital asset sector.
The legal battle marks a significant fallout between Sun and the Trump-associated crypto project, drawing attention to the risks and complexities surrounding high-profile investments in emerging financial technologies.-The Capital Post