World Liberty Financial, a cryptocurrency initiative established by former President Donald Trump and his sons, has initiated a defamation lawsuit against crypto magnate Justin Sun. The suit accuses Sun of orchestrating a “public smear campaign” aimed at damaging the company’s reputation.
Filed in the Eleventh Judicial Circuit Court in Miami-Dade County, Florida, the legal action demands unspecified damages along with a public apology for remarks Sun allegedly made on social media regarding World Liberty Financial.
This lawsuit signifies a significant intensification in the ongoing dispute between World Liberty Financial and Sun, who is a key investor. Earlier in April, Sun filed a lawsuit against the startup, alleging fraud and claiming he was unlawfully restricted from selling digital tokens valued at up to $1 billion.
Founded in 2024 by Donald Trump Jr., Eric Trump, and entrepreneurs Zachary Folkman and Chase Herro, World Liberty Financial has seen its tokens plummet by about 81% over the past year, now trading at approximately 6 cents, as reported by CoinMarketCap.
“Scorched earth”
In its legal complaint, World Liberty Financial contends that Sun bet against the company’s cryptocurrency tokens, labeled under the $WLFI ticker. The company accuses Sun of making straw purchases through intermediaries to hide his involvement. Additionally, the firm claims it froze tokens held by one of Sun’s entities to “safeguard World Liberty and the broader $WLFI community.”
The lawsuit further asserts, “Instead of collaborating constructively with World Liberty to resolve the issues, Sun launched an aggressive campaign designed to extract vast sums from World Liberty, including having his legal representatives threaten litigation intended to ‘set World Liberty ablaze’.”
“When World Liberty refused to capitulate to Sun’s threats, Sun launched his public smear campaign,” the company further alleged.
Sun’s attorneys didn’t immediately respond to a request for comment.
In a post on X, Sun on Monday dismissed World Liberty Financial’s suit as “a meritless PR stunt.” He added, “I stand by my actions and look forward to defeating the case in court.”
The World Liberty Financial lawsuit alleges that Sun made false claims on social media, including allegations that the company “treat[s] the crypto community as a personal ATM” and that its governance practices were improper. World Liberty Financial also accused Sun of employing online influencers and “fake social-media ‘bot’ accounts to amplify his lies.”
“Collectively, Sun’s posts were viewed millions of times and generated widespread media coverage,” the lawsuit claims.
Because Sun is a prominent figure in the crypto industry, his comments were “profoundly harmful to World Liberty,” the company alleges.
Sun, who founded the decentralized blockchain platform Tron in 2017, has a net wealth of nearly $12 billion, according to the Bloomberg Billionaires Index. In 2024, he made headlines for his $6.2 million purchase of a piece of conceptual art consisting of a banana duct-taped to a wall.
