Tron founder, Justin Sun, has taken a lawsuit against World Liberty Financial, a Trump family-backed company backed by President Donald Trump and his family, in a California federal court. The lawsuit accuses Sun of breach of contract, fraud, and conversion, seeking damages and injunctive relief. Sun invested $75 million in World Liberty in late 2024 and took on an advisory role in the project's management. The dispute escalated after a report revealed that World Liberty had deposited five billion of its own WLFI tokens into Dolomite, a lending platform co-founded by a World Liberty adviser, as collateral, and borrowed approximately $75M in stablecoins against them. Sun alleges that the company has hidden a "backdoor blacklisting function" into its smart contract, giving insiders power to freeze any token holder's assets without notice, without a governance vote, and without recourse. World Liberty responded by accusing Sun of "playing the victim while making baseless allegations to cover up his own misconduct". The lawsuit also criticizes a governance proposal published by World Liberty.