World Liberty Financial, co-founded by Donald Trump and his sons, has initiated a defamation lawsuit against crypto billionaire Justin Sun. The suit was filed on Monday in the Eleventh Judicial Circuit Court in Miami-Dade County, Florida. The company claims that Sun orchestrated a “public smear campaign” against their business.
Details of the Lawsuit
The lawsuit demands unspecified damages along with a public retraction of statements Sun allegedly made about World Liberty Financial on social media. This legal action intensifies the ongoing conflict between the firm and Sun, who is a significant investor in the company.
Background of the Dispute
- In April, Justin Sun filed a fraud lawsuit against World Liberty Financial.
- He accused the startup of illegally blocking him from selling digital tokens valued at nearly $1 billion.
World Liberty Financial, founded in 2024 by Donald Trump Jr., Eric Trump, Zachary Folkman, and Chase Herro, has seen its token value plummet by approximately 81% over the last year. Current trading value is about six cents, as per CoinMarketCap.
Allegations Against Sun
World Liberty Financial’s lawsuit alleges that Sun engaged in manipulative tactics. They claim he bet against the company’s tokens, which are traded under the $WLFI ticker, and utilized third-party transactions to obscure his identity during token purchases. To safeguard the interests of other $WLFI holders, the company also froze tokens associated with one of Sun’s businesses.
The lawsuit describes Sun’s actions as a “scorched earth” campaign, alleging he attempted to extort hundreds of millions from World Liberty. Following the company’s refusal to comply with his demands, Sun reportedly launched a public smear campaign, claiming their governance practices were improper.
Reactions from Justin Sun
Sun’s legal representatives did not respond immediately for comment. In a post on X, he dismissed the lawsuit, calling it a “meritless PR stunt.” He affirmed his commitment to defending his actions in court.
World Liberty Financial accuses Sun of spreading falsehoods across social media, stating claims such as the company treating the crypto community as a “personal ATM.” The company also alleges Sun enlisted online influencers and automated social media accounts to amplify these inaccuracies.
Impact of Sun’s Statements
The lawsuit contends that Sun’s high-profile status in the cryptocurrency sector made his statements particularly damaging to World Liberty Financial. His social media posts reportedly garnered millions of views and extensive media attention.
About Justin Sun
Justin Sun founded the blockchain platform Tron in 2017. As of 2023, his net worth is estimated to be nearly $12 billion, according to the Bloomberg Billionaires Index. He made headlines in 2024 for purchasing a piece of conceptual art worth $6.2 million, which featured a banana duct-taped to a wall.
