- Justin Sun sued WLFI with seven claims tied to his $45 million investment in the project.
- WLFI’s freeze on 595 million of Sun’s tokens deepened the legal and financial dispute.
- Eric Trump and Zach Witkoff both pushed back after the lawsuit became public.
World Liberty Financial (WLFI) came under legal pressure this week after Tron founder Justin Sun filed a 52-page fraud lawsuit against the Trump family-backed crypto project. Eric Trump responded quickly, while WLFI co-founder Zach Witkoff said the lawsuit had no merit.
Sun’s 52-page lawsuit outlines seven claims against WLFI, including fraud in the inducement, conversion, and unjust enrichment. The dispute centers on his $45 million investment in the project.
Eric Trump Mocks Sun as WLFI Pushes Back
In an X post on Wednesday, Eric Trump mocked Sun’s well-known purchase of the artwork Comedian. His remarks also showed support for the WLFI team.
In his response, Eric Trump said the only thing more ridiculous than the lawsuit was spending $6 million on a banana duct-taped to a wall. The comment referred to Sun’s widely discussed art purchase.
The purchase took place in November 2024. Sun bought Comedian for $6.2 million at Sotheby’s. The artwork became one of the most talked-about sales linked to the Tron founder.
WLFI allegedly froze 595 million of his unlocked tokens in September 2025. That move reportedly followed a smart contract update that introduced a blacklist function.
The freeze added financial weight to the dispute. Sun’s frozen position reportedly lost more than half its value as the token declined. That drop turned the conflict into a larger legal and financial fight.
WLFI Rejects Sun Claims
Co-founder & CEO of WLFI, Zach Witkoff, rejected the claims and described the lawsuit as a desperate attempt to deflect attention from Sun’s own misconduct. In a post on X, Witkoff said Sun’s claims were entirely meritless.
Witkoff added that World Liberty expects the case to be thrown out promptly. He also said the project took action to protect itself and its users. Witkoff further said WLFI would continue taking all necessary steps to protect its community.
WLFI Model Faces Fresh Scrutiny
However, analyst Simon Dixon compared WLFI to failed crypto firms such as Celsius Network and FTX.
Dixon alleged that WLFI uses its illiquid WLFI token to mint its own stablecoin. He claimed that structure allows the project to buy U.S. Treasuries and earn millions in yield from government debt.
He also tied those claims to the families behind the project. Dixon said the Trump and Witkoff families were using a token structure to earn yield on U.S. debt linked to the Iran war.
For now, Justin Sun is pushing ahead with fraud claims tied to his investment and frozen tokens. WLFI is rejecting the allegations and seeking dismissal of the case. As the dispute moves forward, WLFI and Justin Sun remain at the center of a closely watched legal battle.
Related: Eric Trump Slams Banks’ Low Rates, Backs Stablecoin Yields
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