Tron founder Justin Sun filed a 52-page fraud lawsuit against World Liberty Financial (WLFI) this week. Eric Trump quickly fired back.
The complaint lists seven causes of action, including fraud in the inducement, conversion, and unjust enrichment. Sun invested $45 million in the Trump family-backed project.
Trump and Witkoff Reject Sun’s Claims
Eric Trump took aim at Sun’s infamous $6.2 million banana artwork purchase, calling it more ridiculous than the lawsuit itself.
“The only thing more ridiculous than this lawsuit is spending $6 million on a banana duct-taped to a wall. We are incredibly proud of the @worldlibertyfi team…,” President Donald Trump’s son commented.
Justin Sun purchased the viral art piece Comedian, a banana duct-taped to a wall, for $6.2 million at Sotheby’s in November 2024.
Zach Witkoff, WLFI co-founder, called the lawsuit a “desperate attempt to deflect attention from Sun’s own misconduct.” He said the project expects the case to be thrown out promptly.
WLFI allegedly froze 595 million of Sun’s unlocked tokens in September 2025. A smart contract update had introduced a blacklist function.
His frozen position reportedly lost more than half its value as the token declined.
Banana Gun (BANANA) price is up by almost 6% on the news, to trade for $4.01 as of this writing.
Critics Draw Parallels to Past Failures
Bitcoin advocate Simon Dixon compared WLFI to collapsed platforms like Celsius Network and FTX. He alleged the project uses its illiquid token to mint its own stablecoin. Dixon claimed insiders then earn yield from US Treasury debt.
“So World Liberty Financial allegedly uses its illiquid token WLFI (like CEL did with Celsius and FTT did with FTX) to mint its own stablecoin, allowing it to buy U.S. Treasuries and earn millions in yield from U.S. government debt, while the co-founder’s father (Witkoff) negotiates a nuclear deal in the war that his co-founder’s father (President Trump) started after tearing up the last Iran deal. The Trump and Witkoff families are using a token to earn yield on the debt the U.S. government is incurring from the Iran war. Let that sink in. Follow the money,” wrote Dixon.
A viral thread from self-described Web3 ambassador Peter Girnuz detailed alleged insider allocations and governance manipulation. Witkoff denied any association with Girnuz.
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WLFI trades near $0.079 at the time of writing, down roughly 74% from earlier highs and almost 1% in the last 24 hours.
