Justin Sun Alleges Trump's World Liberty Threatened to Burn His WLFI Tokens

Decrypt has reached out to World Liberty and Sun representatives for comment.

In September, Herro allegedly threatened to report Sun to criminal authorities over "unspecified KYC issues”—months before the Tron founder resolved a three-year legal battle with the SEC, an agreement involving a $10 million penalty that raised corruption concerns among lawmakers and watchdogs. Under the arrangement, Sun neither admitted to nor denied wrongdoing.

Sun, who was previously charged with market manipulation, accused World Liberty’s team of attempting to artificially prop up WLFI’s price by trying to prevent a “large and prominent holder from selling and putting downward pressure on the token’s spot market price.”

The tokens that Sun received after investing $45 million in World Liberty remain frozen to this day. With WLFI changing hands around $0.08 on Wednesday, the entrepreneur’s holdings were valued at around $318 million, according to CoinGecko.

Sun claimed in the lawsuit that he was wrongly blamed by World Liberty for tanking WLFI’s price by 40% on a single day in September. On top of that, Sun alleged that World Liberty improperly accused him of short-selling the token, while also making unfavorable investments.

World Liberty was allegedly “upset” that Sun had purchased $100 million worth of an officially licensed meme coin that Trump debuted shortly before his second term began—a project run by a separate team from World Liberty. Still, Sun claims that his purchase of TRUMP meme coins was “pre-approved by a Trump family member.”

If true, the pre-approval would suggest that the Tron founder’s investment had granted access to members of Trump’s inner circle. In March, the DeFi project approved a measure providing “guaranteed” access to its team for WLFI’s largest backers.

Earlier this month, the feud boiled over in public as Sun accused World Liberty of misconduct and using the crypto community as its “personal ATM.” The company had used WLFI to take out massive stablecoin loans, and Sun said his qualms would be remedied if the DeFi project unlocked his tokens and disclosed the operators of its smart contracts.

“Justin’s favorite move is playing the victim while making baseless allegations to cover up his own misconduct,” World Liberty said in an X post. “See you in court pal.”