Trump-Linked WLFI Sues Justin Sun for Defamation Amid 81% Token Crash
World Liberty Financial has sued Justin Sun for defamation in Florida, accusing the Tron founder of spreading false claims after his own lawsuit over frozen WLFI tokens
Quick Insights
- World Liberty Financial has sued Justin Sun for defamation in Florida state court.
- The Trump-linked crypto venture claims Sun spread false statements after his WLFI tokens were frozen.
- Sun previously sued World Liberty, alleging he was blocked from selling tokens worth up to $1 billion.
- Sun called the defamation case a meritless PR stunt and said he will fight it in court.
World Liberty Financial has sued Justin Sun for defamation, turning its dispute with the Tron founder into a two-front legal fight over reputation, token control and the collapse in confidence around WLFI.
The lawsuit was filed in the Eleventh Judicial Circuit Court for Miami-Dade County, Florida. In a statement announcing the case, World Liberty said it is seeking damages and a public retraction from Sun, accusing him of publishing false claims about the company to nearly four million followers on X.
Sun rejected the allegations in a post on X, calling the lawsuit “a meritless PR stunt” and saying he stands by his actions. The latest filing follows Sun’s own lawsuit against World Liberty, which accused the Trump-linked crypto project of fraud after his tokens were frozen.
World Liberty Fires Back After Sun’s $1B Token Freeze Lawsuit
World Liberty’s defamation complaint comes less than two weeks after Sun sued the company in California. In that case, Sun alleged that World Liberty illegally blocked him from selling WLFI tokens that he said were worth as much as $1 billion. CBS News reported that Sun also accused the company of adding blacklisting powers without proper disclosure to token holders.
World Liberty now says the freeze was justified. The company alleges Sun violated token agreements, concealed purchases through third parties and made public statements intended to damage the project after the freeze.
The company also claims Sun accused World Liberty of treating the crypto community as a “personal ATM” and raised improper governance claims that the company says were false.
Nakamoto Daily previously covered Sun’s side of the dispute, including his lawsuit against Trump-linked World Liberty Financial over seized tokens.
"The alleged defamation lawsuit that World Liberty announced on X today is nothing more than a meritless PR stunt."
WLFI Claims Sun Ran a Smear Campaign Against the Token
World Liberty’s complaint describes Sun’s public posts as part of a pressure campaign that followed the token freeze. The company claims Sun used his profile in the crypto industry, along with influencers and fake social media accounts, to amplify allegations about World Liberty’s governance and treatment of token holders.
Sun has framed the dispute differently. His earlier lawsuit says World Liberty blocked him from realizing value on a large WLFI position and gave itself control over whether tokens could be transferred.
| Side | Core claim | What is at stake |
|---|---|---|
|
WLFI
World Liberty
|
Sun published false statements after the company froze tokens tied to his entities. | The company wants damages and a public retraction. |
|
Sun
Justin Sun
|
World Liberty wrongfully blocked him from selling WLFI tokens. | Sun is challenging the freeze and the issuer’s control over transfers. |
|
Holders
WLFI holders
|
The lawsuits put token controls and disclosure practices under legal scrutiny. | The case may show how much control World Liberty retained after tokens were sold. |
WLFI Token Is Down 81% as Lawsuits Pile Up
World Liberty Financial debuted in 2024 and was co-founded by Donald Trump Jr., Eric Trump, Zachary Folkman and Chase Herro, according to CBS. The project’s WLFI token has since fallen sharply, trading around 6 cents after losing about 81% over the past year, according to CoinMarketCap.
The lawsuits add legal pressure to a token already struggling in the market. Fraud claims, defamation claims, token freezes and allegations of hidden controls are now tied to the same project.
Nakamoto Daily also reported on Sun’s claim that World Liberty Financial hid a blacklist backdoor in its code, an allegation World Liberty’s latest lawsuit appears designed to confront directly.
Sun-WLFI Case Puts Token Control on Trial
Sun’s dispute with World Liberty now reaches beyond reputational damage. The case could force both sides to spell out who had authority over the frozen tokens, what Sun agreed to when he bought them and how much control the issuer retained after sale.
World Liberty says it froze tokens to protect the project and its holders. Sun says the freeze was improper and blocked him from a position he claims was worth up to $1 billion.
If the case moves into discovery, token agreements, governance documents and internal messages could become central to the fight. That would make the lawsuit less about X posts and more about how much control World Liberty had over tokens that investors believed they owned.
