World Liberty Financial (WLFI), a company with ties to the Trump family, has sued crypto entrepreneur Justin Sun, claiming he deliberately spread false information to damage the company and lower the value of its token.
WLFI Strikes Back With Defamation Suit
World Liberty Financial has sued Justin Sun, the founder of Tron, for defamation. The lawsuit, filed in a Florida court on Monday, claims Sun made damaging statements on his X account (formerly Twitter) to his almost four million followers. World Liberty Financial is seeking financial compensation and a public apology from Sun.
The lawsuit claims the crypto billionaire intentionally spread false and damaging information about the company through posts on his social media accounts.
According to the legal complaint, posts made by Sun are damaging to World Liberty, a Florida-based DeFi company, by questioning its honest practices and connections with other businesses. This is causing significant and continuing harm to the company.
In mid-April, Sun initiated an online disagreement with World Liberty, claiming their smart contract for WLFI tokens included a hidden function that could unfairly block users. He later strongly criticized the project, referring to it as “World Tyranny” due to a debated proposal regarding how decisions would be made.
On April 22nd, the founder of Tron took his online dispute with World Liberty Financial International (WLFI) to court. Justin Sun claimed that WLFI had unfairly frozen his digital tokens, removed his ability to vote on proposals, and even threatened to destroy his assets without a valid reason.
He stated that his relationship with the WLFI team began to deteriorate around mid-2025 when he decided not to invest further in their project, particularly the USD1 stablecoin. He also said that World Liberty privately accused him of causing the 40% price drop of the token when it launched in September. After attempting to resolve the issue privately, he feels he has no option left but to pursue legal action.
As an analyst following this case, I’ve been tracking the public response to Justin Sun’s lawsuit. Eric Trump and Zack Witkoff, the co-founders of World Liberty Financial, have come out strongly dismissing the claims and questioning Sun’s credibility. In a recent post on X, Witkoff characterized the lawsuit as a tactic to distract from accusations of Sun’s own wrongdoing, and stated that WLFI is prepared to vigorously defend its community.
Sun Accused Of Reckless Lies, Extortion Threats
World Liberty responded to Sun’s lawsuit on Monday, stating that it did not unfairly block Sun’s token wallet. Their response claims Sun violated rules by making prohibited token transfers, using fake purchases, and illegally selling WLFI tokens, which ultimately caused the token to be frozen.
The statement also asserts that Sun knowingly agreed to WLFI’s ability to freeze funds. This is because the freeze function is detailed in World Liberty’s Terms of Sale, the Token Unlock Agreement Sun signed, and is publicly recorded on the blockchain.
So, the lawsuit claims this crypto billionaire knew exactly how the project was supposed to work, and what had been publicly stated about it. But, they’re saying he intentionally spread false information, seemingly to damage the project and maybe even make some money for himself in the process. It basically accuses him of being reckless with the truth and doing it on purpose.
World Liberty also claims that Sun threatened them before making his accusations public. According to their legal filing, he allegedly said he would ruin the company and drive down the value of its $WLFI token if they didn’t pay him hundreds of millions of dollars.
According to their lawyer, Tom Clare, World Liberty Financial filed a lawsuit against Justin Sun because he made false and damaging statements about the company to a large audience. They claim Sun acted in bad faith and are seeking to correct the record and protect those invested in, working for, or connected to World Liberty Financial. They intend to prove Sun’s statements were untrue both in court and publicly.
In a post on X (formerly Twitter), Sun dismissed the lawsuit as a publicity stunt with no basis in fact. He stated he fully supports his actions and is prepared to fight the case in court.
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2026-05-05 11:42