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Justin Sun sues Trump-backed World Liberty Financial, alleges extortion

financeApr 22, 20261775

Justin Sun sued World Liberty Financial in U.S. District Court in California, filing a 52-page complaint that says WLFI froze 2.94 billion WLFI tokens he bought and cost him about $276 million. Sun says WLFI secretly installed tools to block sales after the tokens became tradeable in September 2025 and threatened to destroy his holdings and report him to U.S. authorities. The complaint accuses the Trump-backed venture of fraud, extortion and governance changes that stripped Sun’s voting rights and seeks damages that could prompt further investor claims against World Liberty Financial.

Key Highlights

Justin Sun filed a 52-page lawsuit in California federal court.
WLFI froze 2.94 billion WLFI tokens Sun purchased.
Sun says the freeze cost him about $276 million.
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