Justin Sun has filed a federal lawsuit against World Liberty Financial, the DeFi project backed by Donald Trump and his family, in the U.S. District Court for the Northern District of California.
The 52-page complaint lists Sun and two British Virgin Islands entities, Blue Anthem Limited and Black Anthem Limited, as plaintiffs. Causes of action include breach of contract, fraud in the inducement, conversion, unjust enrichment, and declaratory relief.
According to the filing, Sun invested $45 million in WLFI tokens between November 2024 and January 2025 and received an additional 1 billion tokens as an advisor. Reporting puts his total position at around $75 million, with roughly 540 million unlocked and 2.4 billion locked tokens in the frozen wallet.
Sun alleges WLFI secretly installed a "backdoor blacklisting function" that prevented the sale of his tokens after they became tradable in September 2025. The freeze followed on-chain outflows from his wallet, including one transfer of about $9 million. WLFI says the freeze was a routine security measure and previously told Sun, "See you in court, pal."
Sun also opposes a governance proposal WLFI published on April 15, which would burn 10% of all advisor tokens and impose a two-year cliff plus two-year vesting on early-purchaser tokens. He says the freeze leaves him unable to vote.
In his X post, Sun distanced President Trump from the dispute and said he remains a supporter of the administration's crypto agenda, attributing the conflict to specific individuals on the WLFI project team.