Justin Sun sues Trump's company: New crack in the crypto world

Donald Trump and the crypto world have benefited greatly from each other. While the Trump family made several billion dollars in profit, 'crypto entrepreneurs' found a new supportive environment for their products in the United States. However, the crypto world is not a single entity, and the lawsuit between factions specialized in fraud, money laundering, and speculation (aside from a small useful area for society) and the Trump family's World Liberty Financial promises to bring these divisions to the surface.

Sun is a colorful gentleman and continues to be a favorite of this bulletin. He is known for his attempts to buy the Pitcairn Islands, a space-like journey, consuming a $6.2 million dollar banana, managing the Tron blockchain, his prime ministership of Liberland, and continuing to use the title of 'His Excellency' despite losing the Grenada ambassadorship three years ago. Additionally, he played a key role in turning Trump from a crypto skeptic to a crypto enthusiast by investing millions of dollars in World Liberty Financial in late 2024.

Given the low probability of the Trump family actually building a successful crypto company and the assumption that World Liberty Financial would find a way to keep investors' money as in past Trump ventures, many people thought Sun's money was actually more of a gift than an investment. However, these skeptics seem to be wrong; at least according to the claims in the lawsuit Sun filed in California. Sun claims that World Liberty Financial abused its rights, stating that he invested $45 million, but the company's operators aimed to profit through fraud by using the Trump brand.

Sun is careful not to portray this lawsuit as an attack on Trump, saying the president was betrayed by his subordinates. However, the allegations he raises, particularly the accusations that World Liberty Financial is on the verge of collapse and tried to extort money from Sun to stay afloat, may upset influential figures. These allegations are important not only for investors but also for America's diplomatic relations; because Abu Dabi invested $2 billion in World Liberty Financial's USD1 stablecoin, and the US has no tolerance to further infuriate its allies in the Gulf.

The timing of the lawsuit is interesting. The SEC stopping its investigation into Sun shortly after Trump's return to the White House and Sun closing the case in March by paying $10 million without admitting to the allegations shows that Sun no longer has concerns about legal action against himself. Sun had also made a large investment in Trump's memecoin, but he is not the only one who has cooled to this project. Privileges such as the right to a dinner with Trump were offered to token investors, but the value of this right fell from $3.28 million in 2025 to $539,000 this year.