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The legal dispute between World Liberty Financial and Justin Sun has turned one of the most prominent alliances in the cryptocurrency world into a legal battle involving frozen tokens, public accusations, alleged market misconduct, and competing lawsuits in two states.
The cryptocurrency company linked to Trump filed a defamation lawsuit against Sun on May 4, 2026, accusing Tron founder of launching a media campaign against the company after restricting his access to his WLFI tokens.
This lawsuit came after Sun's own complaint on April 21, in which he accused World Liberty Financial of unlawfully freezing his assets and preventing him from voting.
This dispute marks a radical shift from late 2024, when Sun became one of the earliest major supporters of World Liberty Financial.
At that time, the project was still seeking momentum after a slow start in fundraising.
Sun invested $30 million in November 2024, later increasing his total investment to approximately $75 million, according to the documents and reports mentioned.
World Liberty Financial was launched in 2024 as a decentralized finance project linked to President Donald Trump and his family, including Donald Trump Jr., Eric Trump, and Barron Trump.
The project garnered widespread attention due to its political connections, digital structure, and prominent backers.