A legal dispute between Justin Sun and World Liberty Financial has intensified, with Eric Trump publicly dismissing the lawsuit.
Trump derided the case on social media, comparing it to the widely circulated $6 million duct-taped banana artwork and calling it “ridiculous,” a stark departure from his earlier favorable remarks about Sun.
The conflict stems from a complaint filed in California federal court, in which Sun accuses World Liberty of unlawfully freezing approximately 4 billion WLFI tokens valued at around $1 billion.
World Liberty responded by characterizing the lawsuit as a “desperate” maneuver and reaffirmed its commitment to protecting users. Co-founder Zach Witkoff alleged “misconduct” by Sun, though no further details were disclosed. The company declined additional comment.
In his filing, Sun claims the firm made a series of shifting, unsubstantiated allegations against him during private discussions.
According to the complaint, World Liberty at times blamed Sun for a roughly 40% drop in WLFI’s price on September 1, 2025—the token’s first trading day—and accused him of contributing to the decline through short positions in perpetual futures. Sun denies the allegations, stating his transactions occurred only after the most significant price падение had already taken place.
The lawsuit also points to World Liberty’s objections to Sun’s $100 million purchase of TRUMP tokens associated with a separate Trump-backed project. Sun says the transaction had approval from a Trump family member involved in both ventures.
Additional claims cited by the company include accusations that Sun acted as a proxy buyer for other investors, carried out unauthorized transfers to exchanges such as HTX and Binance, and submitted insufficient KYC documentation.
The filing further alleges that tensions escalated on September 25, 2025, when World Liberty associate Mr. Herro threatened to report Sun to U.S. authorities over unspecified compliance concerns—issues Sun says were never clearly explained despite repeated requests.





