World Liberty Financial (WLFI) has hit a new low as one of its largest investors files a lawsuit against the project, backed by US First Family, raising concerns about the project’s stability.
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WLFI sinks amid Justin Sun lawsuit
World Liberty Financial’s token is down about 3% over the past 24 hours, hitting a new low of $0.0761 on Thursday morning, according to CoinGecko facts. The cryptocurrency has traded between $0.0887 and $0.1355 since the early February correction, but broke out of this range in early April.
Notably, the token has seen corrections of 16.5% and 26% in the weekly and monthly installments, fueled by multiple controversies and the recent legal action taken by Tron founder and WLFI’s largest holder, Justin Sun.
Sun filed a complaint against the Trump-backed project on Tuesday, alleging that WLFI’s team froze his tokens using an embedded smart contract backlist feature, stripped him of his voting rights and threatened to burn his assets, without proper justification.
According to the lawsuit, he invested a total of $45 million to purchase 3 billion WLFI tokens in 2024 and 2025 and received one billion tokens for advising the project. He also claimed that “World Freedom is on the verge of collapse,” raising concerns about whether the project has sufficient reserves to support its USD 1 stablecoin.
In the filing, Sun says reportedly says his relationship with the team at WLFI deteriorated in the middle of last year after he refused to provide more investment and support to the project, especially the USD1 stablecoin.
Additionally, he claimed that World Liberty Financial privately blamed him for WLFI’s 40% price crash at launch, which led to his blacklisting of addresses on September 4, 2025.
Eric Trump makes a joke about Sun
The Tron Founder confirmed to
World Liberty Financial co-founders Eric Trump and Zack Witkoff publicly responded to Justin Sun’s lawsuit, dismissing his complaint and taking a jab at the Tron founder.
In an X-post, Eric Trump discredited him, arguing that the only thing “more ridiculous than this lawsuit is spending $6 million on a banana channel taped to the wall,” referring to Sun’s infamous purchase of Maurizio Cattelan’s banana artwork in late 2024.
Some online users pointed out the change in their relationship, noting that Trump’s second son had praised Sun less than a year ago. In June 2025, Eric Trump said he was “Tron’s biggest fan” and “loved” Justin Sun, whom he called a “great friend and an icon in the crypto space.”
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Witkoff, the son of Trump’s Middle East envoy Steve Witkoff, also called Sun’s lawsuit a “desperate attempt to divert attention” from the crypto founder’s “misconduct.”
“He engaged in misconduct that required World Liberty to take action to protect itself and its users. World Liberty will continue to take all necessary steps to protect its community,” Witkoff concluded.
At the time of writing, WLFI has fallen more than 75% since its all-time high (ATH) of $0.33 on September 1, 2025.
Featured image from Unsplash.com, chart from TradingView.com