‘On the Verge of Collapse’: Crypto Billionaire Slams Trump Family Venture in Staggering Fraud Lawsuit

Just around a week after publicly criticizing World Liberty Financial (WLF), the Trump family's cryptocurrency venture, crypto investor Justin Sun has filed a lawsuit against the company.

He alleged that his tokens were improperly frozen and his voting rights revoked after he refused to accept a new governance proposal.

Sun, who said he invested more than $45 million in WLF tokens, is seeking a jury trial and asking the court to compel the company to unfreeze his holdings.

According to the 52-page complaint filed by Sun, he claimed that he had invested in the cryptocurrency venture because it was backed by President Donald Trump and his family.

However, he claimed that his tokens were indefinitely frozen and his voting rights revoked on April 15, after he refused to accept a governance proposal that would require "10 percent of all company advisers' tokens be permanently burned."

Sun explained in the report that he was an adviser himself, and had “lawfully purchased” $45 million worth of WLF tokens.

He stated that those tokens were valued at “over $1 billion” in 2024 during what he described as a "pivotal time" for the company.

The investor said that his investment helped establish WLF's credibility and that he provided a public vote of confidence to Donald Trump Jr. and Eric Trump when the venture was struggling.

The complaint accused WLF of making false statements to induce his investment, freezing his tokens unethically, threatening him and damaging his reputation.

It described the business as "on the verge of collapse" with "severe financial insolvency," and alleged that up to 95 percent of proceeds would be repaid to company insiders through WLF token gains.

Sun is asking the court to unfreeze his tokens and prevent WLF from "seizing, burning, destroying or encumbering" them.

After filing the lawsuit, Sun wrote on X that he remains a supporter of Trump and his administration despite the legal action.

"This lawsuit does not change how I feel about President Trump or the Trump Administration," he said.

Sun claimed that "certain individuals on the World Liberty project team have been operating the project in a manner that goes against President Trump's values," and that Trump would not approve of the actions taken against him if he were aware of them.

"All I want is to be treated the same as every other early investor who received tokens — no better, no worse," Sun said. He also criticized the governance proposal and said he intends to continue pursuing the matter legally.