Justin Sun filed a federal lawsuit against World Liberty Financial, saying WLFI froze 2.9 billion of his WLFI tokens and threatened to destroy about $1 billion in holdings. Sun says the freeze drove his stake down from roughly $1 billion to about $75 million; World Liberty responded by accusing Sun of misconduct and denying his defamation claims. World Liberty has political ties through Eric Trump and drew a $500 million investment for a 49 percent stake months before the U.A.E. gained access to guarded American AI chips. The case matters because it highlights how blacklist backdoors in token projects and powerful backers can enable confiscations, raising legal, regulatory, and investor governance risks in crypto.