World Liberty Financial is suing Tron founder Justin Sun for defamation. They claim Sun orchestrated a paid campaign to deliberately lower the value of the WLFI token.
The DeFi project, associated with Donald Trump, alleges that Justin Sun spread false information through media outlets, social media personalities, and automated bots following the suspension of his digital tokens. Sun has denied the accusations, dismissing the legal action as a publicity tactic.
Court Filing Alleges Drive-to-Zero Campaign
The lawsuit was filed in Miami-Dade County, Florida court. World Liberty Financial is asking the court for an unspecified amount of money and a public apology from Sun.
According to the company, Sun’s online activity aimed to artificially lower the value of the WLFI token. The token was trading at around $0.06 on Monday, a nearly 12% increase over the previous 24 hours.
According to a statement filed by World Liberty Financial, Sun directly expressed his desire to sabotage the project.
“Sun’s lies were designed, in his own words, to drive the token price ‘to shit,’” WLFI wrote on X
Token Freeze Triggered the Public Feud
The conflict started in September 2025 when WLFI used its system controls to restrict wallets connected to Sun. As a result, the project blocked 540 million tokens that were freely available and 2.4 billion WLFI tokens already held by Sun’s related accounts.
World Liberty Financial claims that Sun violated his investor agreement by moving tokens from his vehicle, Blue Anthem, to Binance. They state these transfers, along with accusations of short selling, gave them the right to freeze his assets.
Sun previously invested $30 million in WLFI and later raised his stake to roughly $75 million.
In late April, he sued in federal court in California, claiming the other party committed fraud and violated their contract.
Smart Contract Controls at the Center of the Fight
The parties involved don’t agree on whether investors were clearly informed about WLFI’s ability to freeze funds. Sun claims the project concealed a ‘blacklist’ feature within its underlying code.
World Liberty Financial argues the ability to freeze accounts was detailed in their sales terms and the agreements Sun users accepted. They also state that the project is managed openly and by its community.
Since news of the freeze became public last fall, the price of WLFI has fallen significantly. It’s currently down over 75% from its highest recorded value.
Justin Sun claims the lawsuit announced on Monday is just a publicity stunt by WLFI, and he believes it has no legal basis.
The lawsuit World Liberty announced on X today is completely baseless and appears to be just a publicity tactic. I am confident in my actions and will vigorously defend myself in court.
— H.E. Justin Sun 👨🚀 🌞 (@justinsuntron) May 4, 2026
WLFI investors are now following two separate lawsuits. Over the next few weeks, the courts will determine if the ability to freeze accounts was clearly explained in the original agreements. They will also decide if statements made by Sun constitute defamation.
Read More
- Silver Rate Forecast
- USD ILS PREDICTION
- Gold Rate Forecast
- Brent Oil Forecast
- How Bitmine’s Insatiable Ethereum Appetite Is Stirring the Crypto Tea ☕🐳
- You Won’t Believe What This Company Did With $2.54 Billion in Bitcoin!
- USD CNY PREDICTION
- XRP PREDICTION. XRP cryptocurrency
- Ethereum’s Bullish Dance: When Whales and Governments Waltz Together 🐳gov
- XRP Just Hit the Big Leagues – And It’s Not Even Sweating 💼💸
2026-05-04 18:26