In the latest development of the fight between World Liberty Financial (WLFI) and Justin Sun, the Trump Family-backed company has filed a defamation complaint against the crypto founder for his alleged smear campaign to harm the project and its token’s price.
WLFI Strikes Back With Defamation SuitOn Monday, World Liberty Financial filed a defamation lawsuit against Tron founder Justin Sun in the Eleventh Judicial Circuit Court for Miami-Dade County, Florida, seeking both damages and a public retraction of the statements Sun published on X to his nearly four million followers.
“Sun’s posts impugn World Liberty, a Florida-based decentralized finance company, and its governance integrity and business relationships, causing substantial and ongoing harm to World Liberty,” the complaint reads.
In mid-April, Sun began an online dispute against World Liberty, accusing the project of embedding a backdoor blacklisting function in the smart contract used to deploy WLFI tokens, later calling the project a “World Tyranny” over its controversial governance proposal.
Notably, he claimed that his relationship with WLFI’s team soured in mid-2025 after he declined to provide additional investment and support to the project, specifically the USD1 stablecoin. He also affirmed that World Liberty privately blamed him for the token’s 40% price crash during its September launch, and that he tried to resolve the situation privately but has “no choice but to turn to the courts.”
Sun Accused Of Reckless Lies, Extortion ThreatsIt further claims that Sun was fully aware and agreed to WLFI’s freezing authority, as the freeze function is “spelled out in World Liberty’s Terms of Sale, in the Token Unlock Agreement that Sun signed, and on the public blockchain itself.”
Therefore, the lawsuit alleges that despite his knowledge of the project’s governing agreements and public disclosures, the crypto billionaire “acted with reckless disregard for the truth, and that he did so in a calculated effort to harm World Liberty while potentially benefiting his own financial positions.”
“Rather than acting in good faith, Justin Sun chose to defame World Liberty — repeatedly, publicly, and to millions of followers. World Liberty filed this lawsuit as a last resort to correct the record and to protect its token holders, its employees, and all its stakeholders. We are eager to expose the falsity of Sun’s statements in court and in public,” said Tom Clare, attorney for World Liberty Financial in the press release.
