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World Liberty Financial Sues Justin Sun for Defamation as Legal War Between Trump-Linked Crypto Platform and Its Biggest Investor Escalates
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World Liberty Financial has filed a defamation lawsuit against Tron founder Justin Sun in Miami-Dade County, escalating what has become one of the most publicly contentious disputes in crypto between a major platform and one of its largest investors. The lawsuit, filed Monday in Florida's Eleventh Judicial Circuit Court, accuses Sun of making false public statements about World Liberty, violating WLFI token sale terms through alleged prohibited transfers, short-selling, and straw purchases, and conducting a calculated campaign to harm the platform while potentially benefiting his own financial positions. World Liberty's attorney Tom Clare described the lawsuit as a last resort measure after Sun repeatedly made defamatory statements to millions of followers, and the platform is seeking a court-ordered retraction alongside financial compensation. Sun responded on X, calling the lawsuit a meritless PR stunt and stating he looked forward to defeating it in court.
The filing comes less than two weeks after Sun sued World Liberty over the freezing of his WLFI tokens, a dispute that began in September 2025 when Sun's address was blacklisted following a roughly $9 million transfer flagged by blockchain data platforms. World Liberty's lawsuit claims Sun was fully aware of the platform's token freezing rights and agreed to them in the Terms of Sale before publicly calling the same mechanism a hidden trap door. The broader governance concerns surrounding the platform add further context: a March vote showed that 76% of voting power came from just 10 wallets, a concentration Sun cited as alarming, and a proposal to add a further two-year lock-up for early WLFI investors drew Sun's description of it as one of the most absurd governance scams he had ever seen. WLFI rose 5% on Monday following the lawsuit announcement but remains down over 80% since its launch.
