Justin Sun, founder of Tron, filed a fraud lawsuit against World Liberty Financial on April 21, 2026 in California, accusing the Trump family-linked crypto venture of embedding a hidden blacklisting function in its governance token. Sun invested 75 million dollars in WLFI tokens in late 2024, which grew to nearly 1 billion dollars in value, before his holdings were frozen after he refused to invest an additional 200 million dollars. The USD1 stablecoin, launched in March 2025, has a market cap estimated between 2 and 4 billion dollars. WLFI filed a defamation countersuit in May 2026, claiming Sun orchestrated a campaign to tank the token’s market value. In August 2026, a court ruled that key elements of the case would remain in the public court system rather than private arbitration.
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