WLFI Drama Escalates: World Liberty Sues Justin Sun Over ‘Reckless’ Smear Campaign

In the most recent growth of the struggle between World Liberty Financial (WLFI) and Justin Sun, the Trump Family-backed firm has filed a defamation grievance in opposition to the crypto founder for his alleged smear marketing campaign to hurt the mission and its token’s value.

WLFI Strikes Back With Defamation Suit

On Monday, World Liberty Financial filed a defamation lawsuit in opposition to Tron founder Justin Sun within the Eleventh Judicial Circuit Court for Miami-Dade County, Florida, in search of each damages and a public retraction of the statements Sun revealed on X to his almost 4 million followers.

According to the announcement, the lawsuit alleges that the crypto billionaire had engaged in a “deliberate marketing campaign to publish false and defamatory statements” concerning the firm by way of public posts Sun revealed to his giant social media following.

“Sun’s posts impugn World Liberty, a Florida-based decentralized finance firm, and its governance integrity and enterprise relationships, inflicting substantial and ongoing hurt to World Liberty,” the grievance reads.

In mid-April, Sun started a web-based dispute in opposition to World Liberty, accusing the mission of embedding a backdoor blacklisting perform within the sensible contract used to deploy WLFI tokens, later calling the mission a “World Tyranny” over its controversial governance proposal.

On April 22, the Tron founder escalated the web feud right into a court docket battle by submitting a grievance in opposition to the WLFI. Sun alleged that World Liberty’s workforce froze his tokens, stripped him of his voting rights, and threatened to burn his holdings, with out correct justification.

Notably, he claimed that his relationship with WLFI’s workforce soured in mid-2025 after he declined to offer extra funding and assist to the mission, particularly the USD1 stablecoin. He additionally affirmed that World Liberty privately blamed him for the token’s 40% value crash throughout its September launch, and that he tried to resolve the scenario privately however has “no selection however to show to the courts.”

World Liberty Financial co-founders Eric Trump and Zack Witkoff publicly responded to Justin Sun’s lawsuit, dismissing the grievance and discrediting him. In an X submit, Witkoff, who’s the son of Trump Middle East envoy Steve Witkoff, referred to as the lawsuit a “determined try to deflect consideration” from Sun’s alleged “misconduct” and introduced that WLFI would “take all mandatory steps to guard its group.”

Sun Accused Of Reckless Lies, Extortion Threats

World Liberty’s Monday submitting addressed the principle claims of Sun’s lawsuit, alleging that the mission “didn’t have interaction in wrongful blacklisting of Sun’s token pockets.” The grievance argues that Sun had engaged in prohibited transfers, straw purchases, and brief gross sales of WLFI, which led to the token freeze.

It additional claims that Sun was absolutely conscious and agreed to WLFI’s freezing authority, because the freeze perform is “spelled out in World Liberty’s Terms of Sale, within the Token Unlock Agreement that Sun signed, and on the general public blockchain itself.”

Therefore, the lawsuit alleges that regardless of his information of the mission’s governing agreements and public disclosures, the crypto billionaire “acted with reckless disregard for the reality, and that he did so in a calculated effort to hurt World Liberty whereas probably benefiting his personal monetary positions.”

Lastly, World Liberty claims that Sun threatened the corporate earlier than going public. The submitting alleges that he “threatened to ‘mild World Liberty on fireplace’ and trigger the $WLFI token value to ‘go to shit’ if World Liberty didn’t accede to Sun’s calls for to pay him a whole lot of thousands and thousands of {dollars}.”

“Rather than appearing in good religion, Justin Sun selected to defame World Liberty — repeatedly, publicly, and to thousands and thousands of followers. World Liberty filed this lawsuit as a final resort to right the document and to guard its token holders, its staff, and all its stakeholders. We are keen to show the falsity of Sun’s statements in court docket and in public,” stated Tom Clare, lawyer for World Liberty Financial within the press launch.

In an X submit, Sun responded to the lawsuit, calling it “nothing greater than a meritless PR stunt.” The Tron founder affirmed that he stands by his actions and “look[s] ahead to defending the case in court docket.”