Billionaire crypto mogul Justin Sun, who has invested tens of millions of dollars in President Donald Trump’s family’s various crypto ventures, has sued World Liberty Financial, one of the Trump family crypto firms.

In a lawsuit filed Tuesday, Sun alleged that World Liberty Financial illegally froze his holdings of its tokens, which he said has been valued at more than $1 billion, accusing the firm of “engaging in an illegal scheme to seize property.”

Sun accused World Liberty Financial of “egregious misconduct,” alleging that “World Liberty Financial’s operators” see the project as a “golden opportunity to leverage the Trump brand to profit through fraud,” which “has caused Mr. Sun and his companies to incur hundreds of millions of dollars in damages.”

Zach Witkoff, co-founder of World Liberty Financial and son of Trump’s special envoy Steve Witkoff, called the lawsuit a “desperate attempt to deflect attention from Sun’s own misconduct,” alleging on X that Sun’s “claims are entirely meritless, and World Liberty looks forward to getting the case thrown out promptly.”

The Trump Organization and Sun’s lawyers did not immediately respond to MS NOW’s requests for comment. The White House referred to the Trump Organization.

It is unclear whether the lawsuit will jeopardize the crypto investor’s status among the Trump family’s business associates.

The lawsuit comes just days ahead of an exclusive “conference” and “luncheon” this Saturday for top holders of Trump’s memecoin at the Mar-a-Lago club hosted by another Trump family-linked crypto firm Fight Fight Fight LLC, which is inviting the top 29 “qualifying VIPs” to a reception with the president. According to the memecoin’s “leaderboard,” the top holder is currently listed as username “Sun,” though it is unclear whether this is Justin Sun.

But Sun was among the VIP guests when Fight Fight Fight LLC hosted a similar dinner gala for the top memecoin holders at the president’s Virginia golf club last year. During and after that event, Sun posted photos and videos from a reception with Trump, as well as photos and videos of himself at an exclusive White House tour given to VIP guests. Crypto experts estimated his holdings of the memecoin at the time to be roughly $16 million.

Sun’s unusual relationship with the president’s family came to light just a month after Trump won the 2024 election, when Sun announced he had purchased a whopping $30 million in World Liberty Financial tokens. He purchased another $15 million worth of coins in January, a day before Trump took office for the second time, becoming one of the firm’s largest investors.

Later in March, the U.S. Securities and Exchange Commission settled a fraud case against Sun’s crypto company, which paid a $10 million penalty with no admission of wrongdoing.

After his investment, Sun appeared to become a key member of the Trump family’s crypto ventures. Sun has boasted about his relationship with the older Trump sons, posting photos of himself with Donald Trump Jr. and Eric Trump on social media. Sun also moderated a panel discussion last year between Eric Trump and Zach Witkoff at a crypto conference in Dubai, where Witkoff announced that World Liberty Financial had partnered with an Abu Dhabi-backed investment firm in a $2 billion deal. 

Even as Sun has accused the Trump family crypto firm of defrauding him, his lawsuit said Sun “has long been (and remains) an ardent supporter of President Trump and the Trump family,” and that he invested in World Liberty Financial in part “because of the Trump family’s association with the project.”

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