World Liberty Financial (CRYPTO: WLFI) sued Justin Sun for defamation Monday as WLFI surged more than 20% in three days.
The Short-Selling Accusations
World Liberty filed the lawsuit in Florida state court, claiming Sun funded a deliberate short-selling campaign to suppress WLFI’s price when the token launched in September.
The company froze Sun’s token position to prevent further harm, citing rights outlined in his unlock agreement.
Sun began privately threatening litigation afterward, allegedly claiming his lawsuit would “light World Liberty on fire” and cause WLFI’s price to “go to shit.”
World Liberty argues Sun then launched a coordinated media smear campaign.
The company accused Sun of hiring social media influencers and deploying bot accounts to amplify accusations. Sun labeled company leaders, including several Trump family members, as “bad actors” who treat “the crypto community as a personal ATM.”
Sun’s Counter-Lawsuit Came First
Sun sued World Liberty last month alleging extortion and an illegal scheme to seize his tokens.
He claimed the company violated his rights as an investor by improperly freezing his holdings despite remaining a Trump supporter.
He dismissed Monday’s defamation suit as “a meritless PR stunt,” stating he looks forward to defeating the accusations in court.
Justin Sun historically backed the Trump family’s crypto empire. He purchased tens of millions in WLFI tokens and millions in Trump’s Solana-based TRUMP (CRYPTO: TRUMP) meme coin, claiming to be its top holder.
The Relationship Frayed
The Trump-Sun relationship deteriorated in recent months. When President Trump hosted a Mar-a-Lago bash for top TRUMP meme coin holders last month, Sun was notably absent.
Earlier this year, the Trump SEC settled its yearslong fraud case against Sun. The decision reportedly prompted the agency’s head of enforcement to resign shortly afterward.
WLFI Positioning For Compliance
World Liberty emphasized that the freeze function was disclosed in its Terms of Sale and Sun’s agreements.
The firm is positioning itself as compliant, Western-focused, and aligned with regulatory expectations.
“Sun’s claims are demonstrably false. The authorized freeze function was disclosed. The governance process is transparent and community-driven. Yet he weaponized his platform to spread lies to more than 4 million followers,” World Liberty stated.
Image: Shutterstock
Recent Comments