The crypto world is in total shock as a massive legal battle erupts between the industry’s most famous billionaire and a project tied to the White House. Tron (TRX-USD) creator Justin Sun filed a heavy-hitting lawsuit against World Liberty Financial (WLFI-USD). Sun claims the group stole his property and lied about his rights after he poured tens of millions into the venture. This clash is quickly becoming the biggest scandal in the digital asset space this year.
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Justin Sun Sues World Liberty Over $45M “Fraudulent Misrepresentations”
The crypto mogul is taking a stand against the project leaders after he says they tricked him into a massive investment. Sun says that “Mr. Sun invested $45 million to purchase $WLFI tokens from World Liberty not only because of the project’s claims that it would promote adoption of decentralized finance, an issue Mr. Sun cares deeply about and to which he has devoted much of his life’s work, but also because of the Trump family’s association with the project.”
However, the lawsuit alleges that the project soon turned into an “illegal scheme to seize property” as the team tried to squeeze more money out of him.
World Liberty Creates a Secret Blacklisting Function to Freeze Wallets
The legal papers claim that the project leaders hid a secret back door in their code to control investors’ cash. In August 2025, the team allegedly changed the smart contract to add a “blacklisting” function without telling anyone. Sun alleges that “World Liberty buried it in the code without alerting token holders to its existence or implications” and used it “in the dark of night” to lock up his funds.
This move allowed the founders to keep the market price high for themselves while stopping Sun from selling his own holdings.
Chase Herro Threatens to Burn Sun’s Millions and Call the Government
Things turned ugly when Sun refused to follow demands to mint $200 million of the project’s “USD1” stablecoin on his blockchain. The lawsuit says that co-founder Chase Herro made “two overt threats” against Sun to force him into a corner. Herro allegedly threatened to “burn” Sun’s tokens so they would vanish forever.
Then, he claimed Sun’s personal ID paperwork was “inadequate” and threatened to report him to U.S. authorities. Sun now says he just wants to be “treated the same as every other early investor who received tokens — no better, no worse.”
At the time of writing, TRX token is sitting at $0.3346.
