Markets
What to know:
- Justin Sun has sued World Liberty Financial in federal court, alleging the DeFi venture illegally froze roughly four billion WLFI tokens he values at about $1 billion.
- World Liberty has publicly dismissed the lawsuit as meritless and a “desperate” deflection while accusing Sun of unspecified misconduct, but it has not detailed those allegations.
- Sun’s complaint says World Liberty has privately blamed him for a 40% WLFI price crash, alleged short-selling, acting as a straw purchaser, improper exchange transfers and KYC issues, claims he denies as unsupported, and the firm has yet to formally respond in court.
In the quiet hours of our provincial economy, one might almost hear the rustle of papers and the sigh of a ledger. Ten months ago, Eric Trump spoke warmly of Justin Sun in the glow of a screen; today, he likens Sun’s suit to a banana-duct-taped to a wall, and valued at six million, as if a parable could be bought with a smile.
Sun filed his complaint Monday in the Northern District of California, alleging World Liberty Financial illegally froze roughly four billion $WLFI tokens worth around $1 billion. The Trump-family-backed DeFi venture’s informal Tuesday response dismissed the suit as a “desperate” deflection and pledged to keep protecting its users, with co-founder Zach Witkoff accusing Sun of “misconduct.”
Justin Sun’s recent lawsuit against @worldlibertyfi is a desperate attempt to deflect attention from Sun’s own misconduct. His claims are entirely meritless, and World Liberty looks forward to getting the case thrown out promptly.
He engaged in misconduct that required World…
– Zach Witkoff (@ZachWitkoff) April 22, 2026
Neither he nor the company has spelled out Sun’s alleged misconduct. A spokesperson for the firm declined to comment, instead pointing CoinDesk to Witkoff and Eric Trump’s posts on X.
The only thing more ridiculous than this lawsuit is spending $6 million on a banana duct-taped to a wall. We are incredibly proud of the @worldlibertyfi team…
– Eric Trump (@EricTrump) April 22, 2026
The complaint itself may fill in the blanks. Sun claims World Liberty leveled a shifting set of accusations in private conversations and correspondence, none of which, he argues, the company has backed with evidence.
According to the filing, World Liberty blamed Sun for the roughly 40% price crash WLFI experienced on Sept. 1, 2025, the token’s first day of tradability.
WLFI also claimed Sun drove down the price by short-selling perpetual futures on a centralized exchange, Sun’s complaint says, an accusation he calls false, noting that his transfers occurred hours after the steepest drop.
World Liberty separately objected to Sun’s $100 million purchase of $TRUMP tokens from another Trump-backed project, the filing notes, but Sun says this purchase had the blessing of a family member who is a partner in both ventures.
The company allegedly accused Sun of acting as a straw purchaser for other investors, executing prohibited transfers to exchanges HTX and Binance, and submitting inadequate know-your-customer documentation, according to the filing.
“On September 25, 2025, Mr. Herro repeatedly threatened to report Mr. Sun to U.S. criminal authorities over these unspecified KYC issues – which Mr. Herro and World Liberty have refused to explain in anything other than the broadest terms despite repeated requests from Plaintiffs for additional information,” the filing said.
WLFI has yet to file a response to Sun’s suit.
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2026-04-23 06:50