World Liberty Financial, a cryptocurrency firm linked to former U.S. President Donald Trump, has initiated a defamation lawsuit against Justin Sun, the founder of the Tron blockchain, in a Florida state court. The lawsuit, filed on May 4, 2026, accuses Sun of engaging in misconduct related to WLFI tokens, which he purchased.
This legal action follows a previous lawsuit by Sun against World Liberty in a federal court in California, where he claimed the company had unjustly restricted his ability to transfer his WLFI tokens. In its recent filing, World Liberty alleges that Sun and associated entities engaged in straw purchases of WLFI tokens for other investors and may have participated in short-selling activities aimed at undermining the token’s value.
According to the lawsuit, World Liberty took the step of freezing Sun’s WLFI tokens to safeguard its interests and protect the wider community. The company contends that Sun’s public statements regarding the freezing of his tokens contain false and defamatory claims.
World Liberty further alleges that Sun employed social media influencers and automated accounts to disseminate misleading information, which the company claims has resulted in lost business opportunities. Significant portions of the lawsuit have been redacted, including details about Sun’s token purchases and the alleged misconduct.
The lawsuit outlines what World Liberty describes as a coordinated short-selling campaign intended to depress the price of WLFI at its public launch. It specifically references the transfer of $300 million to Binance from wallets associated with Sun.
World Liberty asserts that its decision to freeze Sun’s tokens was a contractual right exercised to prevent further damage to both the company and the broader WLFI community. The lawsuit emphasizes that Sun was aware of this contractual provision prior to his public complaints.
Furthermore, the filing argues that Sun understood the terms of the agreements and knew that the statements he made were defamatory, given his prior knowledge of World Liberty’s authority to restrict token transfers.
The lawsuit seeks damages, reimbursement of expenses, and a retraction of Sun’s statements.
World Liberty Financial has filed a defamation lawsuit against Justin Sun, alleging misconduct related to WLFI tokens. The case highlights ongoing disputes over token transactions and public statements between the two parties.