Eric Trump Mocks Justin Sun Lawsuit as WLFI Token Hits Record Low

The Justin Sun lawsuit against World Liberty Financial landed like a match on dry kindling, and the WLFI token is the thing burning. On Thursday morning, WLFI slipped to a new all-time low of $0.0761, down about 3% on the day and more than 75% from its September 1, 2025 peak of $0.33. The Trump family’s DeFi project now has a problem that cannot be spun into a growth story: its single biggest investor is suing it in open court, and the co-founder’s response was to post a joke about a banana.

Why the Justin Sun Lawsuit Broke WLFI’s Price Floor

WLFI had been stuck in a messy range between $0.0887 and $0.1355 since the early-February correction, grinding sideways while holders waited for a reason to believe. The reason never showed up. Instead, the range broke at the start of April, and then the Justin Sun lawsuit arrived on Tuesday and finished the job.

The damage on the chart is not subtle. WLFI is now 16.5% lower on the week and 26% lower on the month. That is not a healthy token reacting to bad news. That is a token that was already bleeding out, and the complaint filing opened the artery.

Sun says in the filing that he put $45 million into WLFI across 2024 and 2025 to accumulate 3 billion tokens, plus another 1 billion he received for advising the project. That is not a trivial position. That is a whale suing the house, and every retail holder now has to ask whether the whale knows something they do not.

Certain individuals on the World Liberty project team have been operating the project in a manner that goes against President Trump’s values.

What Exactly Did Sun Allege Against World Liberty Financial?

Sun’s complaint against World Liberty Financial, filed Tuesday, alleges the team used a smart-contract blacklist to freeze his tokens, stripped him of voting rights, and threatened to burn his holdings outright. No proper justification, according to the filing. Just a switch flipped on-chain by former partners, without warning or notice to the project’s largest single investor.

The complaint reads less like a routine contract dispute and more like a founder fight that spilled into federal court. Sun dates the blacklisting of his address to September 4, 2025, three days after WLFI’s rocky launch. According to the filing, the project privately blamed him for the token’s 40% crash on debut. His version is that the real fight started earlier, in mid-2025, when he declined to put more money into the project and specifically refused to keep bankrolling the USD1 stablecoin on the terms the team wanted.

The most damaging line in the filing is not about Sun’s own tokens. It is the claim that ‘World Liberty is on the verge of collapse,’ which directly questions whether the project holds enough reserves to back its dollar-pegged stablecoin. If true, that is a solvency allegation. If false, it is the kind of statement that triggers its own lawsuit in return.

• Allegation 1: WLFI team froze Sun’s tokens via a smart-contract blacklist function
• Allegation 2: Sun was stripped of his voting rights without justification
• Allegation 3: The team threatened to burn his 3 billion WLFI holdings
• Allegation 4: Project reserves may be insufficient to back the USD1 stablecoin
• Allegation 5: Sun was privately blamed for the 40% launch-day price crash

Eric Trump’s Banana Defense, and What It Actually Signals

The public response from Eric Trump did not address a single one of Sun’s legal claims. Instead, the president’s second son posted that the only thing more ridiculous than the lawsuit is spending $6 million on a banana duct-taped to a wall. The reference is to Sun’s late-2024 purchase of Maurizio Cattelan’s ‘Comedian’ artwork, which Sun famously ate on camera.

Call it a clever dunk. Call it a deflection. It is not a legal defense.

The more telling detail is how fast the relationship flipped. In June 2025, less than a year before the filing, Eric Trump was publicly calling himself ‘the biggest fan of Tron’ and describing Sun as a ‘great friend and an icon in the crypto space.’ Co-founder Zack Witkoff, son of Trump Middle East envoy Steve Witkoff, took a more measured tone, calling the suit a ‘desperate attempt to deflect attention’ from Sun’s own alleged misconduct and predicting the case will be thrown out soon. Witkoff also said the team acted to protect the project and its users.

The only thing more ridiculous than this lawsuit is spending $6 million on a banana duct-taped to a wall.

The USD1 Stablecoin Question Nobody Wants to Answer

The part of this story that deserves a lot more attention than a banana joke is the USD1 stablecoin. Sun’s filing explicitly questions whether World Liberty Financial holds enough reserves to back the dollar peg. If even a fraction of that concern catches on with other large holders, the USD1 side of the project faces a confidence problem, not just a legal one.

Stablecoins do not die from slow bleeds. They die from the moment holders stop believing the dollar on the screen will actually redeem for a dollar in a bank. Sun is the single biggest WLFI investor, and he is now on the record, in a federal filing, saying the issuer may not be solvent. That is the kind of line that other whales read twice.

World Liberty’s team has denied the allegations in general terms and promised to keep defending the project. What they have not done, at least publicly and at the time of writing, is release an audited reserve attestation that would settle the solvency question in one page. Until that happens, ‘entirely meritless’ is a legal posture, not proof.

What Happens Next for WLFI Holders?

The near-term picture is ugly. WLFI is printing fresh all-time lows during a week when the broader market is not in crisis, which means the selling is project-specific. With the largest holder now litigating against the team, the overhang is structural, not sentimental. Every rally attempt faces the same question: what happens if the court lets Sun’s tokens unfreeze and he decides to exit?

The medium-term picture depends on which story wins. If the team can produce clean reserve data for USD1 and get the suit dismissed early, WLFI has a chance to stabilize at these levels. If discovery drags on and the solvency questions stay open, there is nothing on the chart stopping the token from hunting lower. The $0.0761 floor from Thursday is a floor only until it is not.

The cynical read is that this is a power fight between two people who used to be friends, and retail is caught in the middle. The optimistic read is that legal clarity, even ugly legal clarity, is better than the rumor-driven slide of the last two months. Pick one.

How Did WLFI Fall 75% From Its High?

WLFI peaked at $0.33 on September 1, 2025, the day of its launch. Within hours, it crashed 40%, a move the team privately blamed on Sun. From there, the token never recovered its launch price. It drifted lower through the fall, found a range in February, held it through March, and broke down in April.

The Thursday low of $0.0761 represents a drop of more than 75% from the all-time high in roughly seven months. That is not a correction. That is a regime change in how the market prices this token, and the lawsuit is both a symptom and an accelerant.

This article is for informational purposes only and does not constitute investment advice. Every investment and trading decision involves risk. Readers should conduct their own research before making any financial decisions.