World Liberty Financial Sues Justin Sun for Defamation

AOL.com reported Monday that Trump-linked crypto venture World Liberty Financial has filed a defamation lawsuit against billionaire crypto entrepreneur Justin Sun, alleging he ran a coordinated smear campaign against the firm following his own legal action last month.

A Dispute Rooted in Blocked Tokens

Sun filed a $45-million lawsuit in San Francisco federal court weeks earlier. He alleged that World Liberty Financial blocked his transfers of WLFI governance tokens he valued at that sum. Sun claimed the firm threatened to permanently invalidate his holdings and refer him to criminal authorities if he declined to invest further. Days before filing, Sun publicly branded the firm “World Tyranny Financial” on X.

WLF Chief Executive Zach Witkoff pushed back sharply after Sun’s lawsuit landed. Witkoff called the claim a deflection strategy and vowed to have it dismissed quickly. A court filing later confirmed WLF agreed not to destroy or transfer Sun’s tokens pending a resolution.

How Sun Became WLF’s Biggest Backer

The broader dispute traces back to a stumbling token launch in late 2024. WLF had targeted $300 million in WLFI token sales but raised just $22 million in its opening month. Sun stepped in between November 2024 and January 2025, spending $45 million to acquire 3 billion tokens. His backing appeared to revive momentum and the project eventually pulled in roughly $550 million in total token sales.

WLF rewarded Sun with an advisory role and gifted him an additional billion tokens then worth around $15 million. Sun publicly praised the venture at the time, describing the United States as a blockchain hub and crediting the Trump administration for the shift.

The Trump Family’s Stake in WLF

World Liberty Financial launched in 2024 with a livestream appearance by President Donald Trump. Trump’s sons Donald Jr., Eric and Barron are listed as co-founders. A Trump family business entity holds a 38% stake in WLF and is entitled to as much as 75% of revenue from token sales. The firm also acknowledges that demand for its products depends partly on Trump’s personal profile.

The defamation filing adds a new legal front to what has become an unusually public clash between two prominent figures in the crypto industry. Neither party has confirmed a hearing date. Sun has not publicly responded to the defamation claim.

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