- World Liberty Financial filed a defamation lawsuit against Justin Sun in Florida, escalating a bitter legal dispute.
- The lawsuit accuses Sun of making false statements and violating WLFI token-sale terms through prohibited transfers.
- Sun has denied the allegations, calling the suit a “meritless PR stunt” and vowed to fight it in court.
- The platform, linked to the Trump family, previously froze Sun’s tokens, which he claims was unreasonable.
World Liberty Financial has escalated its feud with Tron founder Justin Sun by filing a defamation lawsuit against him in Florida this Monday. The legal action intensifies a conflict between the Trump family-linked crypto platform and one of its largest investors. The lawsuit accuses Sun of spreading false public statements about World Liberty.
It also alleges he violated WLFI token-sale terms through prohibited transfers, short-selling, and straw purchases. Consequently, the suit demands a court-ordered retraction and compensation from the founder. Sun denied the allegations in a Monday post, calling the lawsuit a “meritless PR stunt”. He stated he looks forward to defeating the case in court.
This lawsuit follows Sun’s own legal action against World Liberty over the freezing of his WLFI tokens less than two weeks ago. The dispute has intensified scrutiny of the project’s token controls and governance structure. The legal battle comes after growing backlash towards the platform, which proposed a further two-year lock-up for early investors. Sun called that proposal “one of the most absurd governance scams I have ever seen.”
The lawsuit claims Sun was fully aware of World Liberty‘s right to freeze user tokens and agreed to it. “Rather than acting in good faith, Justin Sun chose to defame World Liberty — repeatedly, publicly, and to millions of followers,” claimed Tom Clare, attorney for World Liberty Financial. He added the lawsuit was a last resort to protect tokenholders and employees.
Meanwhile, the WLFI token rose 5% in 24 hours but is down over 80% since launch, according to CoinMarketCap data. US President Donald Trump and his sons are listed as co-founders of the platform, according to its white paper.
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