World Liberty Financial, a cryptocurrency company with ties to former U.S. President Donald Trump and his family, has filed a lawsuit against Tron founder Justin Sun in a Florida state court, alleging defamation and malicious conduct. The company claims that Sun’s actions regarding WLFI tokens have caused significant harm both to World Liberty and the wider community.
Counter-lawsuit by Sun
Shortly before this lawsuit emerged, Justin Sun had filed his own action in a federal court in California. Sun’s filing argued that World Liberty unfairly blocked his right to transfer WLFI tokens held by his company. In its latest submission, World Liberty contends that Sun and related entities purchased WLFI tokens on behalf of other investors, and suggests these tokens may have been used to initiate short positions on exchanges.
According to the company’s allegations, the WLFI tokens in Sun’s accounts were frozen to prevent potential market manipulation and to protect the company’s interests. World Liberty also asserts that Sun misled the public with defamatory remarks circulated on both blockchain platforms and social media.
Market manipulation and price pressure claims
In the lawsuit, World Liberty accuses Justin Sun of orchestrating the spread of false narratives through influential figures on social media platforms. The company also notes that this campaign allegedly led to the loss of key business opportunities.
Certain sections of the lawsuit file remain sealed, particularly details about Sun’s token acquisitions and the specifics of alleged misconduct. One of World Liberty’s most serious accusations is that wallets linked to Sun moved $300 million to Binance, allegedly to execute a deliberate and large-scale short-selling operation during the token’s public offering.
World Liberty Financial stated: “After uncovering these violations, we froze the tokens controlled by Sun based on contract terms. This action was necessary to protect both World Liberty and the WLFI community. Sun was previously aware that such a step could be taken.”
Contract terms and disclosed information
Documents submitted to the court by World Liberty reiterate that despite Sun’s apparent surprise on social media, he was fully aware of the company’s right to freeze token transfers. The company emphasizes that both Sun and the public had prior knowledge of these contractual restrictions.
The grounds for the lawsuit include defamation, a demand for damages and costs, as well as a call for Sun to retract his statements. World Liberty Financial has gained attention as a new player in the crypto space, partly due to its links to U.S. political circles. Justin Sun, on the other hand, is a prominent figure in the global crypto ecosystem as the founder of Tron.
