- WLFI sues Justin Sun, escalating a dispute over token control, governance, and alleged smear campaign tactics.
- Justin Sun denies claims, calling the lawsuit a PR stunt as tensions grow over frozen tokens and project control.
- Legal battle raises fresh concerns about transparency, investor trust, and governance in crypto projects.
World Liberty Financial has sued Justin Sun for defamation in Florida, escalating a dispute over token control and governance. The crypto venture, linked to Donald Trump and his family, accused Sun of running a coordinated smear campaign through public statements on X.
In the posts, it said the claims aimed to damage its reputation and pressure the release of frozen tokens tied to its entities. As a result, the case now raises broader questions about transparency and control in crypto projects.
WLFI said, “Today, we are filing a lawsuit against Justin Sun for defamation.” It accused him of spreading false claims to influence the project and its token value. However, Sun rejected the allegations, calling the lawsuit “a meritless PR stunt” and stating he will fight the case in court.
Allegations of Smear Campaign and Token Dispute
WLFI accused Justin Sun of using media outlets, influencers, and bots to spread negative claims about the project. It said, “Sun launched a defamatory smear campaign in conjunction with press outlets,” arguing the effort aimed to push its token value lower. The company also claimed Sun breached agreements after his entity, Blue Anthem, bought WLFI tokens.
WLFI said Sun later moved some of those tokens to Binance in transactions it considers prohibited. It added that it froze the assets to protect the ecosystem. However, the company claimed Sun responded by publicly attacking its governance structure. WLFI maintained that the freeze function was clearly disclosed in its terms and agreements.
Governance Concerns and Political Ties Surface
This comes after WLFI has been increasingly questioned regarding how its fundraising activities have been going. The firm has managed to raise over $550 million and conduct further token sales privately. According to information revealed, an entity associated with the Trump family gets 75 percent of the funds that have been raised.
WLFI pushed back against that criticism and media coverage, stating, “They should be ashamed of themselves.” The White House denied any wrongdoing and said it supports crypto innovation within legal standards.
Meanwhile, Justin Sun’s relationship with the Trump-linked crypto ecosystem appears to be weakening. Although he previously invested heavily in WLFI and related tokens, recent developments point to rising tension between both sides.
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