Court Rejects Sun's Privacy Bid, Exposing Tron's Centralized Contradiction

A federal court has denied Tron founder Justin Sun’s attempt to block Bloomberg from publishing details of his crypto portfolio, which includes over 60 billion TRX tokens—reportedly more than 60% of Tron’s total supply. The ruling, issued by Judge Colm Connolly in the U.S. District Court for the District of Delaware, rejected Sun’s motion for a temporary restraining order, emphasizing that he failed to provide "clear and convincing evidence" of confidentiality promises made by Bloomberg. The court also noted that Sun had previously disclosed more detailed information about his Bitcoin holdings on social media, weakening his privacy claims.

Bloomberg’s analysis, based on financial data provided by Sun’s representatives in February 2025, revealed that the majority of his net worth stems from cryptocurrency holdings. These include 60 billion TRX (subject to a 75% liquidity discount due to Sun’s control over most of the supply), 17,000 Bitcoin, 224,000 Ether, and 700 million Tether. The outlet’s Billionaires Index profile highlighted the risks associated with Sun’s dominance of Tron’s token supply, which contradicts the project’s stated commitment to decentralizationtitle1^[1]. Sun’s legal team argued that the publication of his holdings could expose him to security threats, but the court dismissed these concerns, stating that the information was "arguably less specific" than what Sun had already shared publicly.

The case underscores broader debates about market concentration in the crypto sector. According to a report by Onesafe, whale dominance in altcoins—where a small number of holders control significant portions of a token’s supply—can destabilize markets and erode investor trusttitle14^[7]. Shiba Inu (SHIB), for instance, has 62% of its supply concentrated in the top 10 wallets, raising similar concernstitle14^[7]. Sun’s situation, however, is unique due to the scale of his TRX holdings and the legal scrutiny surrounding his business practices.

The controversy has also intersected with Sun’s involvement in World Liberty Financial (WLFI), a crypto project linked to former U.S. President Donald Trump. In September 2025, WLFI froze 540 million of Sun’s WLFI tokens after transfers to the HTX exchange, which he co-foundedtitle11^[4]. Sun denied allegations of market manipulation, calling the freeze "inappropriate," while WLFI cited concerns over "possible market manipulation" as justificationtitle12^[5]. The incident added to Sun’s legal challenges, including a pending SEC lawsuit alleging unregistered securities offerings.

The court’s decision to allow Bloomberg’s disclosure aligns with the SEC’s ongoing scrutiny of crypto projects. In May 2025, SEC Chair Gary Gensler’s successor requested a stay in Sun’s case to evaluate its alignment with the agency’s priorities. Meanwhile, Sun’s investments in Trump-aligned ventures, such as a $75 million stake in World Liberty Financial, have drawn attention amid broader regulatory uncertainty.

The ruling highlights the tension between privacy and transparency in the crypto industry. While Sun argued for confidentiality, Bloomberg defended its First Amendment rights, asserting that the public interest in reporting on influential figures outweighs individual privacy concerns. The outcome sets a precedent for how courts may handle similar disputes, particularly as institutional investors and regulators increasingly scrutinize tokenomics and governance structures.