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Trump-Linked WLFI Files Major Defamation Lawsuit Against Billionaire Justin Sun

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Justin Sun known as it a “meritless PR stunt.” World Liberty Financial, or WLFI known as it a lawsuit.

WLFI Vs. Sun: A Public Feud Goes Legal

The Trump-affiliated crypto undertaking filed a defamation claim in opposition to the Tron founder on Monday, accusing him of operating a deliberate marketing campaign to trash its repute and push its token worth down.

According to the filing, Sun started making false public statements throughout media channels and social platforms beginning April 12 — statements WLFI says had been designed to control sentiment, not elevate respectable issues.

The lawsuit doesn’t come out of nowhere. Sun had been deeply embedded within the undertaking. An entity linked to him purchased $30 million in WLFI tokens again in November 2024, and he joined WLFI as an advisor across the identical time. The relationship regarded stable — till it didn’t.

Things started to crack when Sun allegedly tried to maneuver his tokens to Binance in violation of the phrases he had agreed to. WLFI responded by freezing the property, citing a contractual proper to take action. That freeze, the corporate says, was not a punishment — it was a safety.

Sun Fires Back With His Own Lawsuit

Sun didn’t take the freeze quietly. In late April, he sued WLFI first, claiming the corporate had wrongfully locked up tokens that had been as soon as value $1 billion and stripped him of his voting rights. His lawsuit framed WLFI because the aggressor. WLFI’s defamation declare, filed days later, tells a unique story.

Based on reports from the submitting, WLFI alleges that after the freeze, Sun went public with deceptive claims concerning the undertaking’s governance and advised there was a secret backdoor in its system.

The firm says these claims ignored disclosures already out there in its documentation. It additionally accuses Sun of utilizing cash to unfold his message additional — allegedly working with influencers and bot accounts to amplify his posts throughout social media.

Sun, for his half, confirmed he’s conscious of the lawsuit and stated he stands by the whole lot he did. He says he expects to win in court docket.

Token Takes A Hit Amid The Drama

WLFI’s token briefly jumped 8% after information of the lawsuit broke. But that pop sits in opposition to a rougher backdrop — the token had already fallen 15% over the prior week and was down 35% over the previous month.

The lawsuit asks the court docket to carry Sun financially accountable for damages tied to the WLFI token. How a lot that determine might attain has not been disclosed in reviews to date.

What is obvious is that two events who as soon as shared a enterprise relationship at the moment are preventing that battle in public — and in court docket.

Featured picture from Unsplash, chart from TradingView

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