Trump Family's Crypto Empire Under Fire: Justin Sun Accuses World Liberty of Deception and Account Freezes

Justin Sun, one of the largest investors in the Trump family's primary crypto company, World Liberty Financial, has publicly criticized the company, claiming it is misleading investors. This marks a significant moment as a crypto insider aligned with President Donald Trump calls out his family's crypto dealings, which Democrats argue benefit from presidential authority.

On Sunday, Sun, a billionaire and prominent figure in the crypto industry, took to X to accuse World Liberty of establishing a system that grants company officials unilateral power over user accounts, including the ability to freeze them. Sun alleges that his account has been frozen since September, preventing him from selling his holdings. According to analysis by blockchain tracking group Bubblemaps, the value of these holdings has declined by over $80 million, now standing at about $43 million. Sun reportedly invested at least $75 million in World Liberty tokens, once becoming its largest investor.

In his statement, Sun wrote, "I have always been an ardent supporter of President Trump and his crypto-friendly policy," but added, "this is the opposite of decentralization. This is a trap door marketed as an open door. I denounce the ongoing token scandals by the bad actors at WLFI."

World Liberty responded on social media by accusing Sun of misconduct that warranted the freeze and hinted at a potential lawsuit. The company pointed to past legal issues, noting that the Securities and Exchange Commission charged Sun in 2023 with fraud over crypto trades and illicit promotion, a case dismissed in March after he agreed to pay a $10 million fine. In a post on X, World Liberty stated, "We have the contracts. We have the evidence. We have the truth. See you in court pal."

World Liberty, co-founded by Trump's three sons and listing Trump as a co-founder emeritus, launched in 2024 during Trump's third presidential campaign. Trump was removed from official positions upon taking office, with the White House stating he is not involved in managing his family's crypto holdings. The company promised to become a leader in crypto and decentralized finance, with Eric Trump remaining a key figure and set to be the keynote speaker at the Bitcoin 2026 conference.

Eric Trump and Donald Trump Jr. at the Bitcoin 2025 conference in Las Vegas.

Dozens of crypto platforms have emerged in recent years, each with their own tokens governed by company rules. Many offer assurances on security and fund handling, but most tokens have declined in value alongside the broader crypto market. World Liberty's primary token, WLFI, has lost 74% of its value since August, trading at around 8 cents as of Monday. However, its stablecoin, USD1, ranks among the top 10 most heavily used stablecoins, benefiting from partnerships and availability on major exchanges like Binance and Kraken.

Sun's criticism comes amid broader investor concerns about World Liberty's finances. In February, blockchain data reported by CoinDesk revealed that World Liberty borrowed $75 million from another crypto group, Dolomite, using 5% of the entire WLFI supply as collateral. This sparked fears on social media about the company's ability to repay if WLFI's value continues to drop. World Liberty responded on X, stating it is "nowhere near liquidation" and would add more collateral if needed, later announcing it had repaid $25 million.

Austin Campbell, a crypto consultant and instructor at New York University, commented that concerns about the loan arrangement are justified, noting, "If you took this conduct and translated it to traditional markets, you would have some problems."

A representative for the SEC did not respond to requests for comment. Last year, House Democrats dedicated a week to criticizing the Trump family's crypto activities, accusing Trump of "profiting off the Presidency," which the White House denied. World Liberty's governing document indicates that a Trump family-owned company is entitled to 75% of revenues from token sales after expenses. Trump's 2025 financial disclosure listed over $57 million in income from World Liberty, with the Trump Organization not commenting and the White House denying conflicts of interest.

Shortly before his inauguration in January 2025, Trump launched another crypto token called TRUMP through a separate entity. Its value has also plummeted, trading at around $2.81 compared to a peak of $45 at launch. A coin launched by Melania Trump around the same time followed a similar decline, though she has denied direct involvement in its management.