A new legal dispute has emerged between World Liberty Financial and Justin Sun, adding fresh tension to their strained relationship.
The company confirmed in a Monday tweet that it has filed a lawsuit accusing Sun of defamation, claiming he orchestrated a coordinated campaign to damage its reputation and undermine confidence in its token.
Key Points
- World Liberty Financial confirmed in a Monday tweet that it has filed a lawsuit accusing Sun of defamation.
- It alleges that Sun made a series of false public statements about the project on several media channels and social platforms beginning on April 12.
- The lawsuit seeks damages for WLFI tokens, holding Sun accountable.
- Meanwhile, the lawsuit followed an earlier legal action by Sun against World Liberty Financial.
World Liberty Financial Files Lawsuit Against Justin Sun
According to the filing, World Liberty Financial alleges that Sun made a series of false public statements about the project on several media channels and social platforms beginning on April 12. The Donald Trump-affiliated firm claims these statements were part of a broader effort to influence sentiment and push the WLFI token price “to shit.”
Notably, both parties’ relationship dates back to November 2024, when Blue Anthem, an entity linked to Sun, reportedly acquired $30 million in WLFI tokens. Sun also joined World Liberty Financial as an advisor.
The company states that Sun attempted to transfer these tokens to crypto exchange Binance, violating the agreed terms. In response, World Liberty Financial says it exercised a contractual right to freeze the assets, a move it describes as necessary to protect the network.
Rather than resolving the matter privately, the firm alleges that Sun escalated the situation by publicly criticizing its governance model and raising concerns about a secret backdoor. These claims, according to the lawsuit, were misleading and ignored disclosures already outlined in the project’s documentation.
Lawsuit Seeks to Hold Sun Accountable
World Liberty Financial also accuses Sun of using financial resources to amplify his narrative, including working with influencers and bot accounts to expand reach across social media. The company argues that such actions go beyond typical disagreements and risk damaging trust across decentralized finance (DeFi) more broadly.
The lawsuit seeks damages for WLFI tokens, holding Sun accountable. Notably, while the WLFI token has increased by 9% in the past 24 hours in reaction to this lawsuit, it has crashed 16% in the past week and 37% over the last 30 days.
Meanwhile, the lawsuit followed an earlier legal action by Sun against World Liberty Financial. The Tron founder sued the company in late April, claiming that it froze its tokens worth $1 billion at one time and wrongfully stripped him of his voting rights.
Sun has also reacted to the lawsuit today, claiming it is a “meritless PR stunt.” According to him, he will stand by his actions and looks forward to winning the case in court.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
