World Liberty Financial (WLFI) has hit new lows as one of its largest investors files a lawsuit against the project backed by the US First Family, raising concerns about the project’s stability.
WLFI Sinks Amid Justin Sun LawsuitSun filed a complaint against the Trump-backed project on Tuesday, alleging that WLFI’s team froze his tokens using an embedded smart contract backlist function, stripped him of his voting rights, and threatened to burn his holdings, without proper justification.
According to the lawsuit, he invested a total of $45 million to buy 3 billion WLFI tokens in 2024 and 2025 and received one billion tokens for advising the project. He also claimed that “World Liberty is on the verge of collapse,” raising concerns about whether the project has enough reserves to back its USD1 stablecoin.
Eric Trump Takes A Jab At SunWorld Liberty Financial co-founders Eric Trump and Zack Witkoff publicly responded to Justin Sun’s lawsuit, dismissing his complaint and taking a jab at the Tron founder.
“He engaged in misconduct that required World Liberty to take action to protect itself and its users. World Liberty will continue to take all necessary steps to protect its community,” Witkoff concluded.
As of this writing, WLFI has fallen more than 75% since its all-time high (ATH) of $0.33 on September 1, 2025.
