%{{tag.tag}} {{articledata.title}} {{moment(articledata.cdate)}} @{{articledata.company.replace(" ","")}} comment Cryptoprowl / Cryptocurrency entrepreneur Justin Sun has filed a lawsuit against World Liberty Financial (CRYPTO: $WLFI ), the decentralized finance project backed by the U.S. President Donald Trump and his family, alleging the platform wrongfully froze his digital assets and violated his rights as a token holder. The complaint, filed Tuesday in the U.S. District Court for the Northern District of California, accuses the project of fraud, breach of contract, and unjust enrichment. Sun, the founder of the Tron (CRYPTO: $TRX ) blockchain and the project's largest individual investor, claims World Liberty Financial utilized a hidden backdoor blacklisting function in its smart contracts to lock approximately 2.9 billion WLFI tokens belonging to him. At their peak, these holdings represented a valuation of over $1 billion, though recent market volatility and liquidity constraints have seen the estimated value of the frozen tokens drop to roughly $75 million. The lawsuit follows a year-long dispute that began in late 2025, when World Liberty blacklisted Sun's wallets amid allegations of misconduct on both sides. Sun has characterized recent governance proposals as a scam designed to lock out major token holders who do not actively participate in specific protocol maneuvers. He further alleged that the project's leadership threatened to burn his tokens without due process. Despite the litigation, Sun reaffirmed his personal support for President Trump on social media, distancing the commander-in-chief from the day-to-day operations of the venture. Sun attributed the conflict to certain individuals on the project team whom he claims are operating in a manner contrary to the administration's stated values of financial freedom. World Liberty Financial has not released a formal statement regarding the filing, though it previously dismissed Sun's claims as baseless in public social media posts. The lawsuit marks a significant fracture in the relationship between the Trump-linked crypto venture and its most prominent early backer.