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Trump Family's World Liberty Financial Sued for Extortion

What began as a governance dispute between Justin Sun and World Liberty Financial has spiraled into a lawsuit and volley of personal attacks.
Trump Family's World Liberty Financial Sued for Extortion
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Justin Sun is taking his feud with World Liberty Financial World Liberty Financial to court, escalating his dispute with the Trump-backed crypto project into a full-blown legal battle over token control and investor rights.

What's the Scoop?

  • Freeze Lawsuit: Blockchain billionaire Justin Sun has filed suit in California federal court, alleging that the Trump-backed World Liberty Financial project wrongfully froze his tokens and blocked his participation in governance. Sun claims the team removed his ability to vote on proposals while threatening to permanently burn his holdings without justification. "They wrongfully froze all of my tokens, stripped me of my right to vote on governance proposals, and have threatened to permanently destroy my tokens by 'burning' them – all without any proper justification," Sun wrote in a post to X.
  • Prior Grievances: Earlier this month, World Liberty Financial was thrust into the spotlight after executing a series of massive borrows against its governance token holdings through onchain lending market Dolomite. Justin Sun subsequently rebuked World Liberty Financial for a separate matter, voicing disdain for the WLFI token’s “backdoor blacklisting function,” which gives its issuer, “unilateral power to freeze, restrict, and effectively confiscate the property rights of any token holder, without notice, without cause, and without recourse.”
  • Trump Card: Eric Trump – Executive Vice President of The Trump Organization and a key WLFI promoter – rebutted with an ad hominem attack against Sun, responding, "The only thing more ridiculous than this lawsuit is spending $6 million on a banana duct-taped to a wall. We are incredibly proud of the World Liberty Financial team..."


Jack Inabinet

Written by Jack Inabinet

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Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial real estate development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business.

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