World Liberty Financial (WLFI) is a decentralized finance protocol founded in September 2024 by Zachary Folkman, Chase Herro, Alex Witkoff, Zach Witkoff, and Trump family members. The protocol issues the $WLFI governance token and the $USD1 stablecoin. According to public filings, DT Marks DEFI LLC — an entity affiliated with Donald J. Trump and certain family members — holds 22.5 billion $WLFI tokens valued at over $3 billion and is entitled to 75% of all token-sale net proceeds.
Sun was named a WLFI advisor in 2025 after publicly disclosing an investment in the venture of between $30 million and $75 million. In a complaint filed in early April 2026, Sun alleges that subsequent technical review of the WLFI contract architecture revealed a previously-undisclosed administrative function that permits WLFI-designated officials to freeze wallets at their discretion. Sun further alleges that approximately $240 million of his own $WLFI holdings have been frozen via this mechanism.
Sun characterized the contract as "a trap masquerading as a door" in his complaint and accompanying public statements. WLFI responded the same day with a counterclaim alleging Sun is engaged in a coordinated smear operation, breach of contract, and tortious interference. The countersuit asserts: "See you in court. Scammers calling out scammers."
The mutual litigation is the latest escalation in WLFI-related controversies. In November 2025, Senators Elizabeth Warren and Jack Reed sent a letter to Treasury and the DOJ citing a 501(c)(3) watchdog report alleging WLFI had sold tokens to wallets with on-chain ties to the North Korean Lazarus Group, a sanctioned Russian "ruble-backed sanctions evasion tool," an Iranian crypto exchange, and the Tornado Cash mixer.
In March 2026, WLFI offered "guaranteed direct access" to its business development team and executives to anyone holding $5 million of $WLFI for six months. The arrangement was widely described in press coverage as a pay-for-access scheme.
The Bureau maintains active profiles on both Justin Sun (case #MBI-2025-005) and the Trump Family / WLFI venture (case #MBI-2025-004).