World Liberty Financial (WLFI) has hit a new low after one of its biggest investors filed a lawsuit against the project, which is backed by the U.S. First Family. This has raised concerns about the project’s stability.
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WLFI Sinks Amid Justin Sun Lawsuit
World Liberty Financial’s token has dropped about 3% in the last 24 hours, hitting a new all-time low of $0.0761 on Thursday morning, according to CoinGecko. The cryptocurrency had been trading between $0.0887 and $0.1355 since early February, but broke out of that range at the start of April. The token has fallen 16.5% in the past week and 26% over the past month, driven by several controversies and a recent legal action from Tron founder and WLFI’s largest holder, Justin Sun.
On Tuesday, Sun filed a complaint against the Trump-backed project. He claims that WLFI’s team froze his tokens using a built-in smart contract blacklist, stripped him of his voting rights, and threatened to burn his holdings without good reason. According to the lawsuit, Sun invested a total of $45 million to buy 3 billion WLFI tokens in 2024 and 2025, and received another billion tokens for advising the project. He also said that “World Liberty is on the verge of collapse,” raising doubts about whether the project has enough reserves to back its USD1 stablecoin.
In the filing, Sun reportedly said his relationship with WLFI’s team soured in mid-2024 after he refused to provide more investment and support, especially for the USD1 stablecoin. He also claimed that World Liberty Financial privately blamed him for WLFI’s 40% price drop at launch, which led to his address being blacklisted on September 4, 2025.
Eric Trump Takes A Jab At Sun
The Tron founder confirmed on X that he had tried to resolve the issue privately, but that “certain individuals on the World Liberty project team have been operating the project in a manner that goes against President Trump’s values,” leaving him “no choice but to turn to the courts.”
World Liberty Financial co-founders Eric Trump and Zack Witkoff publicly responded to Justin Sun’s lawsuit, dismissing his complaint and taking a jab at the Tron founder. In an X post, Eric Trump discredited him, saying the only thing “more ridiculous than this lawsuit is spending $6 million on a banana duct-taped to a wall.” This was a reference to Sun’s well-known purchase of Maurizio Cattelan’s banana artwork in late 2024.
Some online users pointed out how their relationship had changed, noting that Trump’s second son had praised Sun less than a year ago. In June 2025, Eric Trump said he was “the biggest fan of Tron” and “loved” Justin Sun, calling him a “great friend and an icon in the crypto space.”
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Witkoff, who is the son of Trump’s Middle East envoy Steve Witkoff, also called Sun’s lawsuit a “desperate attempt to deflect attention” from the crypto founder’s “misconducts.” He said the claims are “entirely meritless” and that World Liberty Financial looks forward to getting the case thrown out soon. “He engaged in misconduct that required World Liberty to take action to protect itself and its users. World Liberty will continue to take all necessary steps to protect its community,” Witkoff concluded.
As of now, WLFI has fallen more than 75% since its all-time high of $0.33 on September 1, 2025.
Featured Image from Unsplash.com, Chart from TradingView.com
Frequently Asked Questions
Here is a list of FAQs based on the headline Eric Trump has called Justin Suns lawsuit ridiculous as WLFI hits a new alltime low
BeginnerLevel Questions
Q Who is Eric Trump and why is he talking about a lawsuit
A Eric Trump is the son of former President Donald Trump and an executive at the Trump Organization He commented on a legal case involving crypto entrepreneur Justin Sun calling the lawsuit ridiculous
Q Who is Justin Sun
A Justin Sun is a wellknown cryptocurrency entrepreneur best known for founding the Tron blockchain and being involved in projects like BitTorrent
Q What is WLFI
A WLFI likely refers to a cryptocurrency or token In this context its a digital asset that has dropped to a record low price
Q What does it mean when a crypto hits an alltime low
A An alltime low means the price of that cryptocurrency has fallen to its lowest value ever recorded since it launched
Q Is Eric Trump involved in the lawsuit
A No he is not a party to the lawsuit He simply made a public statement criticizing the lawsuit as ridiculous
IntermediateLevel Questions
Q What is the lawsuit about between Justin Sun and Eric Trumps circle
A The exact details arent fully public but the lawsuit likely involves claims of fraud market manipulation or contract disputes related to crypto projects Eric Trumps comment suggests he believes the case has no merit
Q Why would Eric Trump call a lawsuit ridiculous if its about a crypto project
A He may be defending the integrity of his familys business or a related project Calling it ridiculous implies he thinks the lawsuit is baseless or a publicity stunt
Q How does Justin Suns lawsuit affect the price of WLFI
A Negative newslike a highprofile lawsuit between major figurescan cause fear and uncertainty among investors leading to selling pressure and a drop in price The timing suggests the lawsuit may have worsened WLFIs decline
Q Is this related to Donald Trumps crypto project
A Yes WLFI is widely believed