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Investor Justin Sun sues Trump-backed World Liberty Financial over token rights
Sun says World Liberty froze his tokens and used blacklisting controls to pressure him to mint $200 million in USD1, according to the lawsuit.
- On Tuesday, crypto entrepreneur Justin Sun sued World Liberty Financial in a California federal court, alleging the Trump-family-backed venture committed fraud and wrongfully froze his $WLFI token holdings.
- Sun invested $45 million in 2024 to become a major advisor, citing support for decentralized finance and the Trump family; Eric Trump and Donald Trump Jr. oversee the venture and initially appointed him to establish credibility.
- The complaint alleges World Liberty secretly blacklisted Sun's wallet and threatened to permanently "burn" his tokens to manipulate market prices after he refused to mint the firm's USD1 stablecoin on his TRON blockchain.
- World Liberty dismissed the allegations as "baseless," while Sun stated he "tried in good faith to resolve this situation" before turning to courts; the dispute raises regulatory questions about the venture's centralized token control.
- Sun's lawsuit claims the venture is on the "brink of collapse" with insufficient reserves; this escalation follows a controversial governance proposal published April 15 that would indefinitely lock tokens of non-compliant holders.
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The billionaire of cryptocurrencies, Justin Sun, and his companies have sued World Liberty Financial, a cryptocurrencies project co-founded by President Donald Trump, and charged the company with extortion and an “illegal plan” to take their tokens. In a lawsuit filed this Tuesday before the San Francisco federal court, Sun also claimed that “World Liberty is on the verge of collapse” and questioned whether it has enough reserves to back up its …
·Spain
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Investor Justin Sun sues Trump-backed World Liberty Financial over token rights
Crypto entrepreneur Justin Sun sued U.S. President Donald Trump's World Liberty Financial on Tuesday, seeking to unfreeze his tokens and block the crypto venture from seizing, destroying or restricting his holdings.
·United Kingdom
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Total News Sources27
Leaning Left5Leaning Right0Center7Last UpdatedBias Distribution58% Center
Bias Distribution
- 58% of the sources are Center
58% Center
L 42%
C 58%
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