Trump-Linked World Liberty Files Defamation Case Against Justin Sun Over WLFI Token Dispute

World Liberty Financial, a crypto firm tied to Donald Trump and his family, has filed a defamation lawsuit against Tron founder Justin Sun in Florida state court. The company alleges Sun engaged in “gross misconduct” linked to his purchases and handling of WLFI tokens, including claims of straw purchases, coordinated selling activity, and market manipulation.

Justin Sun wrote on Monday

According to the filing, Sun allegedly used affiliated entities to acquire tokens on behalf of other investors and may have participated in short-selling activity aimed at pressuring WLFI’s price. World Liberty also claims Sun amplified misleading statements through influencers and automated accounts, resulting in reputational damage and lost business opportunities.

The dispute follows Sun’s own lawsuit in California, where he accused World Liberty of unfairly freezing his WLFI holdings. The firm argues the freeze was a contractual right intended to protect the ecosystem and prevent further harm.

World Liberty is seeking damages, retractions, and legal costs, while also maintaining that Sun was aware of token restrictions prior to his public statements.