April 27, 2026
By Anjali Kochhar
Crypto billionaire Justin Sun has filed a lawsuit against US-based digital asset firm World Liberty Financial, accusing the company of illegally freezing his cryptocurrency holdings and violating investor rights.
The lawsuit, filed in a federal court in California, centres around Sun’s investment in World Liberty’s native WLFI tokens. According to the complaint, the company allegedly restricted his ability to trade or sell tokens worth more than $300 million by embedding secret control mechanisms into the token contracts.
Sun claims these actions effectively stripped him of ownership rights and prevented him from participating in governance decisions tied to the project. The filing also alleges that the firm introduced “blacklisting” tools that blocked his transactions without prior notice.
The dispute appears to have escalated after Sun refused to make additional investments in the venture. He argues that the company retaliated by freezing his holdings and limiting his access to funds, causing substantial financial losses.
World Liberty Financial, a crypto venture reportedly linked to the family of US President Donald Trump, has denied all allegations. The company claims that any restrictions placed on Sun’s account were due to concerns over misconduct and were necessary to protect the platform and its users.
Sun, one of the earliest and largest investors in the project, initially invested tens of millions of dollars, with the value of his holdings rising significantly at one point. However, tensions grew over governance issues and transparency, with other investors also reportedly raising concerns about the company’s internal practices.
The lawsuit further accuses the firm of attempting to coerce Sun into supporting its stablecoin project and using pressure tactics when he declined. His legal team has described the situation as an “illegal scheme” to seize control of his digital assets.
Legal experts say the case could have wider implications for the crypto industry, particularly around token ownership rights and the level of control issuers can exert over blockchain-based assets. The outcome may set a precedent for how disputes between investors and crypto firms are handled in the future.
The case highlights ongoing concerns about governance, transparency, and investor protection in the rapidly evolving cryptocurrency sector.
