Trump-Linked World Liberty Sues Justin Sun for Defamation

TLDR

• World Liberty filed a defamation lawsuit against Justin Sun in a Florida state court.
• The lawsuit follows Sun’s federal case in California over frozen WLFI tokens.
• World Liberty alleged that Sun engaged in misconduct tied to WLFI token purchases.
• The company claimed Sun launched a short-selling campaign during the token’s public debut.
• The complaint linked $300 million in wallet transfers to Binance to Sun-affiliated entities.

World Liberty filed a defamation lawsuit against Tron founder Justin Sun in Florida on Monday. The company alleges Sun made false statements after it froze his WLFI tokens. The case follows Sun’s own federal lawsuit in California over the same tokens.

World Liberty Alleges Misconduct Over WLFI Token Activity

World Liberty accused Sun and related entities of “gross misconduct” tied to WLFI token purchases. The company claimed Sun used straw buyers to acquire tokens for other investors. It also alleged that Sun may have engaged in short selling during the public launch.

The complaint described “a large, deliberate, short-selling campaign designed to suppress $WLFI’s price.” It linked that campaign to Sun-affiliated wallets that moved $300 million to Binance. World Liberty stated that it froze the tokens under its contractual rights.

The lawsuit said the freeze aimed to “protect” the company and the broader $WLFI community. It argued that Sun knew about the transfer restrictions before the freeze occurred. The filing stated that Sun understood the company’s authority over token transferability.

World Liberty claimed Sun later posted tweets that contained false or defamatory information. The company said Sun knew those statements were untrue because of prior agreements. It alleged that those posts harmed its reputation and business prospects.

The complaint also alleged that Sun hired influencers and used bots to amplify his claims. World Liberty said those actions led to lost business opportunities. Several sections of the filing remain redacted, including details about token purchases.

Justin Sun Challenges Freeze as Legal Battle Escalates

Sun filed his own lawsuit against World Liberty in federal court in California. He alleged that the company unfairly froze his WLFI tokens. His complaint claimed that the freeze restricted his ability to transfer assets.

World Liberty responded in its Florida filing by emphasizing contract terms. The company stated that Sun “knew through his personal experience” about the transfer limits. It argued that Sun’s public statements ignored those agreed terms.

The Florida lawsuit seeks damages, expenses, and a retraction of Sun’s statements. World Liberty requested compensation for reputational harm and related losses. It framed the dispute as a breach of agreement and defamation issue.

The filing repeated that Sun knew about the company’s right to restrict token transfers. It stated that both Sun and the public understood that authority. The court has not yet set a hearing date in the Florida case.

World Liberty filed the complaint in a Florida state court on Monday. Sun’s separate case remains pending in a California federal court. Both cases now proceed in parallel as the dispute over WLFI tokens continues.