Sun Yuchen said that he has filed a lawsuit in the California Federal Court against World Liberty Financial (WLFI), a subsidiary of US President Trump’s family, to safeguard his legal rights as a WLFI token holder.
"They wrongly froze all of my tokens, deprived me of the right to vote on governance proposals, and threatened to permanently destroy my tokens," Sun said in the complaint.
Justin Sun, a major investor in World Liberty Financial Corporation, has previously claimed that the company unilaterally froze and restricted privately held WLFI tokens by embedding what he called a "backdoor blacklist function" into the blockchain-based contracts used by its tokens.
Justin Sun wrote at the time that the feature gave World Liberty the unilateral power to freeze, restrict and effectively confiscate the property rights of any token holder without prior notice, reason, or any recourse.
Justin Sun claimed that World Liberty mistakenly blacklisted his WLFI token wallet in 2025, making him the “first and largest victim” of this World Liberty tool. The tokens held by Justin Sun were frozen in September last year, and at the time, World Liberty said that they had no intention of blacklisting anyone and that they were only responding to "malicious or high-risk activities that may harm community members."
World Liberty is the most high-profile of several lucrative cryptocurrency companies co-founded by the Trump family. The cryptocurrency company announced in 2024 that it would give small investors control over the flow of funds through a "decentralized finance" (DFT) application, but the application has not yet been launched.
An analysis published last year showed that World Liberty generated more than $460 million in revenue for the Trump family in the first half of 2025.
Justin Sun became the largest public investor in the then fledgling World Liberty in late 2024, spending tens of millions of dollars to purchase WLFI tokens and was appointed as an advisor to the company. He later increased his holdings to at least $75 million worth of tokens, according to his January 2025 social media posts.
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Justin Sun accuses Trump family’s cryptocurrency company of unilaterally freezing its assets