WLFI Soars 12% As World Liberty Financial Sues Justin Sun for Defamation
World Liberty Financial filed a defamation lawsuit in opposition to Tron founder Justin Sun on Monday. The grievance accuses Sun of working a paid smear marketing campaign to crash the WLFI token.
The Trump-linked Decentralized Finance (DeFi) challenge says Sun used press, influencers, and bots to amplify false claims after the freeze of his tokens. Sun has rejected the swimsuit and known as it a meritless PR stunt.
Court Filing Alleges Drive-to-Zero Campaign
The grievance was filed within the Eleventh Judicial Circuit Court for Miami-Dade County, Florida. World Liberty Financial is looking for unspecified damages and a public retraction from Sun.
The firm says Sun’s posts had been designed to suppress WLFI’s market worth. The token traded close to $0.06 on Monday, up by virtually 12% within the final 24 hours.
World Liberty Financial mentioned in its submitting announcement that Sun brazenly acknowledged his intent to hurt the challenge.
“Sun’s lies had been designed, in his personal phrases, to drive the token worth ‘to shit,’” WLFI wrote on X
Token Freeze Triggered the Public Feud
The dispute started after WLFI used its on-chain controls to lock Sun-linked wallets in September 2025. The challenge froze 540 million unlocked tokens and a couple of.4 billion locked WLFI held by Sun’s entities.
World Liberty Financial mentioned Sun’s automobile, Blue Anthem, transferred tokens to Binance in opposition to his investor settlement. The firm argues these transfers, plus alleged brief promoting, justified the freeze.
Sun beforehand invested $30 million in WLFI and later raised his stake to roughly $75 million.
He filed his own lawsuit in California federal courtroom in late April, alleging fraud and breach of contract.
Smart Contract Controls on the Center of the Fight
The two sides disagree on whether or not WLFI’s freeze authority was clearly disclosed to traders. Sun has argued the challenge hid a blacklist function inside its good contract.
World Liberty Financial counters that the freeze authority was outlined in its Terms of Sale and in Sun’s buy agreements. The challenge says its governance course of is community-driven and clear.
WLFI’s worth has slumped since the freeze became public final fall. The token is now down greater than 75% from its all-time high.
According to Justin Sun, the lawsuit introduced Monday is WLFI’s PR stunt, with the Tron government calling it “meritless.”
The competing lawsuits depart WLFI traders watching two parallel instances. Filings within the coming weeks will take a look at whether or not the freeze perform was contractually disclosed. They can even take a look at whether or not Sun’s posts crossed into defamation.
The submit WLFI Soars 12% As World Liberty Financial Sues Justin Sun for Defamation appeared first on BeInCrypto.