World Liberty Financial (WLFI) has hit new lows as one of its largest investors, Tron founder Justin Sun, files a lawsuit against the Trump-backed project. The WLFI token fell around 3% over the past 24 hours, reaching a new all-time low of $0.0761 on Thursday morning, according to CoinGecko data. The cryptocurrency had been trading between $0.0887 and $0.1355 since the early February correction, but broke down from this range at the start of April. The token has seen 16.5% and 26% corrections in the weekly and monthly timeframes, fueled by multiple controversies and the recent legal action taken by Sun.
Justin Sun filed a complaint on Tuesday alleging that WLFI's team froze his tokens using an embedded smart contract blacklist 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. Sun reportedly says that his relationship with WLFI's team soured mid-last year after he declined to provide more investment and support, specifically for the USD1 stablecoin. He additionally claimed that World Liberty Financial privately blamed him for WLFI's 40% price crash on its launch, leading to his address being blacklisted on September 4, 2025.
The Tron founder affirmed on X that he had tried to resolve the situation privately, but that “certain individuals on the World Liberty project team have been operating the project in a manner that goes against President Trump’s values,” leaving him “no choice but to turn to the courts.” World Liberty Financial co-founders Eric Trump and Zack Witkoff publicly responded to the lawsuit. In an X post, Eric Trump discredited Sun, arguing that the only thing “more ridiculous than this lawsuit is spending $6 million on a banana duct-taped to a wall,” referencing Sun's notorious purchase of Maurizio Cattelan's banana artwork in late 2024. Some online users pointed out the shift in their relationship, noting that in June 2025, Eric Trump had said he was “the biggest fan of Tron” and “loved” Justin Sun, whom he called a “great friend and an icon in the crypto space.” Witkoff called Sun's lawsuit a “desperate attempt to deflect attention” from the crypto founder's “misconducts,” affirming that his claims are “entirely meritless” and that World Liberty Financial looks forward to getting the case thrown out soon. As of this writing, WLFI has fallen more than 75% since its all-time high of $0.33 on September 1, 2025.
