Crypto entrepreneur Justin Sun has filed a lawsuit against World Liberty Financial, accusing the Trump-linked digital asset firm of freezing his token holdings and threatening to permanently erase them.

The case was filed in a federal court in California against World Liberty Financial, which was co-founded by US President Donald Trump and his sons.

Sun, founder of the Tron blockchain and one of World Liberty’s largest early investors, claims the company blocked his ability to sell tokens after they became tradable in September 2025.

According to the lawsuit, the firm also allegedly introduced mechanisms allowing it to freeze or “burn” tokens held in digital wallets, effectively removing access to assets without investor consent.

Sun invested about $45 million in WLFI tokens and later received additional allocations, bringing his holdings to roughly 4 billion tokens. Based on current pricing, his stake is valued at about $320 million.

World Liberty Financial denied Sun’s role as an adviser and has previously rejected his claims, saying it would address the matter in court. The White House did not immediately comment.

The dispute marks a sharp escalation in tensions between Sun and the firm, which has faced increasing scrutiny from investors over governance and transparency concerns.

Sun had earlier accused the company of embedding a “backdoor blacklisting function” in its smart contracts, allowing it to restrict or freeze tokens without user approval.

World Liberty responded at the time by insisting it had evidence to support its position and said, “See you in court.”

The lawsuit also alleges that Sun was pressured to increase his investment, including commitments tied to additional crypto assets and potential equity participation.

Sun has said he attempted to resolve the dispute privately but was denied requests to restore access to his tokens.

The case adds fresh attention to World Liberty Financial, which has generated significant revenue linked to token sales and continues to attract political and regulatory scrutiny due to its ties to the Trump family.