World Liberty Financial, a cryptocurrency project connected to President Trump and his family, has sued Justin Sun, the founder of Tron, for defamation. The lawsuit, filed on May 4th in Florida, claims Sun launched a damaging media attack after accusing World Liberty Financial of fraud in April.
Summary
- World Liberty Financial alleges Sun conducted straw purchases of WLFI tokens to conceal his identity, engaged in short selling of the token, and made false statements on social media after his tokens were frozen in violation of his terms of sale.
- Sun fired back immediately, calling the suit “a meritless PR stunt” and saying he stands by his actions, while WLFI CEO Zach Witkoff said he looks forward to “the truth coming out in court.”
- The WLFI token rose approximately 12% on the day of the filing, though the token is still down roughly 85% since its September 2025 launch.
On May 4th, World Liberty Financial filed a defamation lawsuit against Justin Sun in Florida, just after the Consensus 2026 conference began in Miami. This action was a direct response to a lawsuit Sun filed on April 21st in California, where he claimed World Liberty Financial had built a hidden feature into its smart contract. Sun alleged this feature allowed the company to freeze, limit access to, and essentially take control of investors’ tokens.
According to crypto.news, Justin Sun claims the World Liberty Financial project (WLFI) blocked his access to his tokens, stripped him of his voting power, and even threatened to destroy his $75 million investment, which he’s held since 2024, for no apparent reason. In a recent countersuit, WLFI accused Sun of secretly buying tokens for others (‘straw purchases’) and potentially profiting by betting against the token’s value (‘short selling’) before publicly spreading false information. The project stated on X that Sun has been running a deliberate campaign to damage its reputation and has ignored evidence proving his claims are false.
According to Fortune, Justin Sun posted on X accusing the WLFI team of secretly controlling user assets, freezing investor funds unfairly, and essentially using the crypto community for personal gain. He demanded someone be held accountable. WLFI responded with a lawsuit, claiming Sun’s statements were false and defamatory, and that he knew their terms of sale allowed them to freeze his tokens. Sun quickly dismissed the lawsuit as a publicity stunt, stating he stands by his actions and intends to win the case in court.
According to crypto.news, the conflict began intensifying in April when Justin Sun claimed WLFI was secretly limiting certain controls. This happened while the project was already being questioned for using its own tokens as loan security and because its USDC pool was almost completely used up. crypto.news reported that Sun’s WLFI wallet had lost around $60 million in value before the legal battles started, following an overall 85% drop in the token’s price from its peak in September 2025. So far, neither of the lawsuits has gone to trial, and none of the claims have been proven in court.
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2026-05-04 21:38