World Liberty Financial (WLFI) has hit new lows as one of its largest investors files a lawsuit against the project backed by the 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 has fallen 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-$0.1355 since the early February correction, but broke down from this range at the start of April.
Notably, 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 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 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.
In the filing, Sun reportedly says that his relationship with WLFI’s team soured mid-last year after he declined to provide more investment and support to the project, specifically the USD1 stablecoin.
In addition, he claimed that World Liberty Financial privately blamed him for the WLFI’s 40% price crash on its launch, leading to his address blacklist on September 4, 2025.
Eric Trump Takes A Jab At Sun
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 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 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 Trump’s second son had praised Sun less than a year ago. In June 2025, Eric Trump 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.”
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Witkoff, who is the son of Trump Middle East envoy Steve Witkoff, also 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.
“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.
As of this 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
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