War in the "Crypto-Empire"
#TRUMP #JustinSun sues World Liberty Financial for fraud and "asset seizure"
What started as a strategic alliance between two of the most controversial names in the ecosystem has ended up in court. Justin Sun, founder of
#Tron , has launched a legal offensive against World Liberty Financial
#WLFI , the DeFi project backed by the president's family
#DonaldTrump , alleging a scheme of extortion, market manipulation, and covert centralization.
The lawsuit, filed this Tuesday, reveals a complete breakdown after an initial investment of $45 million from Sun.
The Crypto "Corralito": Sun claims that WLFI altered the smart contract in August 2025 to include a secret "blacklist." This feature allowed them to freeze his WLFI tokens without prior notice or governance vote, invalidating the supposed decentralized nature of the project.
Alleged $200 Million Blackmail: According to the document, the blocking of funds was a pressure tactic to force Sun to mint $200 million of the company’s stablecoin (USD1) within the Tron network, under conditions imposed by WLFI.
Market Manipulation: The lawsuit argues that by preventing Sun (one of the largest holders) from selling, WLFI kept the price of WLFI artificially inflated for the benefit of the founders and the corporate treasury.
Threats and Defamation: Sun directly points to Chase Herro (co-founder of WLFI), accusing him of threatening to "burn" his tokens and of reporting him to U.S. authorities using alleged irregularities in his KYC documentation.
"I just want to be treated the same as any other early investor: neither better nor worse," Sun stated on X, also distancing himself from the project's new governance proposals.
$WLFI $TRX