Trump-backed World Liberty Financial (WLFI) has filed a defamation suit against billionaire crypto investor Justin Sun! This, as part of an ongoing dispute, in which the latter has sued the company for freezing his WLFI tokens and voting rights.
WLFI accuses Sun of smear campaign
World Liberty Financial claims that Sun launched a coordinated public campaign against the company after acting on allegations of misconduct involving WLFI tokens. According to the lawsuit, Sun invested approximately $75 million in WLFI through entities it controlled, but then engaged in activities that the company said harmed the token and its ecosystem.
WLFI alleges that Sun short-sold WLFI tokens and made straw purchases on behalf of other investors. The company also claims that its public statements were intended to pressure WLFI to restore access to its frozen tokens.
In an article on X, the company said:
This is about the integrity of decentralized finance.
Token freeze is at the center of the fight
The problem worsened after WLFI froze Sun’s tokens, claiming the action was permitted under its terms and agreements. Sun denied the allegations of misconduct and filed its own complaint in April, accusing WLFI of blocking its role in governance.
The company argued that Sun did not attempt to resolve the issue privately and that it accused its governance process of being unfair and illegitimate. WLFI rejected these claims, saying the freeze feature was disclosed in its terms.
The company also believes that Sun used influencers and bots to amplify negative claims.
Both lawsuits could take time to resolve
As it stands, the company is seeking damages and has requested a jury trial. Sun’s previous filing also seeks damages, a jury trial and the unfreezing of its tokens.
We are taking legal action to hold Sun accountable.
Both trials are ongoing and the outcome could take months…or even years.
Final Summary
- World Liberty Financial sued Justin Sun for defamation.
- This, after freezing the tokens linked to its $75 million investment.
