Billionaire investor Justin Sun has filed a fraud lawsuit in a California federal court against World Liberty Financial (WLF), the cryptocurrency venture led by Donald Trump Jr. and Eric Trump.
According to a report by independent.co.uk, Sun alleges that his multi-million dollar investment in the project was secured through fraudulent means. The 52-page complaint, filed in the U.S. District Court for the Northern District of California on Monday, claims the venture is currently "on the verge of collapse."
Sun, an adviser to the project, claims his tokens have been indefinitely frozen and his voting rights revoked. This dispute follows his refusal to accept a new governance proposal from April 15 that required burning 10 percent of all company advisers' tokens.
In the lawsuit, Sun states he "lawfully purchased" $45 million worth of WLF tokens in 2024. He noted that these tokens have at times been valued at over $1 billion.
Sun described his involvement as a "decisive anchor investment" intended to provide a "public vote of confidence" for the fledgling project. He added that he was drawn to the venture because of its goal to promote decentralized finance and his long-standing support for the Trump family.
Allegations of insolvency and fraud
However, the lawsuit alleges that WLF operators used the Trump brand as a "golden opportunity to leverage the Trump brand to profit through fraud." Sun claims he and his companies have suffered "hundreds of millions of dollars in damages."
The complaint accuses the venture of making false statements, misrepresenting legal compliance, and scheming to secure more capital from him. It further alleges that WLF is facing "severe financial insolvency" and plans to distribute up to 95 percent of token sale proceeds to company insiders.
Sun is seeking a jury trial to force WLF to unfreeze his tokens and prevent the company from destroying or encumbering them. He is also seeking damages and legal costs.
On X, formerly Twitter, Sun clarified that he still supports Donald Trump personally. He stated that he believes "certain individuals on the World Liberty project team have been operating the project in a manner that goes against President Trump’s values."
Sun explicitly excused the president, who serves as WLF’s "chief crypto advocate," stating: "I do not believe President Trump would condone these actions if he knew about them."
While Sun has faced past scrutiny from the SEC and DOJ regarding his business dealings, the outlet reported that recent investigations into his companies have largely fallen away following his involvement with WLF.
