Public Disclosures Undermine Sun's Crypto Privacy Lawsuit, Judge Rules

A U.S. federal court has dismissed Tron founder Justin Sun’s legal challenge to prevent Bloomberg from disclosing details of his cryptocurrency portfolio, ruling that the publication did not breach confidentiality agreements or pose credible safety risks. The decision, issued by Judge Colm Connolly in the U.S. District Court for the District of Delaware on September 22, 2025, denied Sun’s requests for a temporary restraining order and preliminary injunction.

The court filings revealed that Bloomberg’s reporting included estimates of Sun’s holdings: 60 billion Tron (TRX), 17,000 Bitcoin (BTC), 224,000 Ether (ETH), and 700 million Tether (USDT), totaling over $3 billion in assets. Sun’s legal team argued that the information was “unverified, confidential, and private,” and that its disclosure could increase his vulnerability to hacking, phishing, or physical harm. However, Judge Connolly emphasized that Sun failed to provide “clear and convincing evidence” that Bloomberg had promised to withhold the data. The judge also noted that Sun had previously shared more detailed information about his Bitcoin holdings on social media, undermining his privacy claims.

Bloomberg’s legal team denied allegations of confidentiality assurances, with reporter Muyao Shen and colleagues asserting that no such promises were made. The court found no evidence in chat logs or sworn declarations to support Sun’s claims of a confidentiality agreement. Connolly further ruled that the publication of Sun’s crypto assets did not constitute an “objectively offensive” disclosure, as the data was less specific than information Sun had voluntarily shared. The judge also dismissed Sun’s argument that the release would heighten risks of targeted attacks, citing his public disclosures as mitigating factors.

The ruling adds to ongoing scrutiny of Sun’s business activities and legal entanglements. The Tron founder faces a 2023 lawsuit from the U.S. Securities and Exchange Commission (SEC) over alleged unregistered securities offerings. The case was paused following President Donald Trump’s inauguration, with the SEC requesting a stay. Simultaneously, Sun has invested in Trump-linked crypto ventures, including World Liberty Financial (WLFI), which recently froze $540 million in Sun’s tokens. The WLFI project, associated with the Trump family, cited security concerns for the freeze, prompting Sun to publicly demand the restoration of his assets.

The court’s decision underscores the challenges of asserting privacy claims in the crypto sector, particularly for public figures. Sun’s arguments were weakened by his own history of disclosing asset details, a factor the judge cited as critical to the ruling. Bloomberg’s reporting, meanwhile, aligns with broader trends of transparency in tracking billionaire wealth, especially as digital assets gain institutional prominence. The outcome may set a precedent for future disputes over the disclosure of crypto holdings, emphasizing the need for clear contractual agreements to establish confidentiality.

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