Justin Sun vs WLFI – All about a $75M legal war over frozen tokens
Both sides are out for blood as the argument heads to court.
Trump-backed World Liberty Financial [WLFI] has filed a defamation lawsuit against billionaire crypto investor Justin Sun! This, as part of an ongoing dispute, one where the latter sued the company over freezing his WLFI tokens and voting rights.
WLFI accuses Sun of a smear campaign
World Liberty Financial claims Sun launched a coordinated public campaign against the company after it acted on alleged misconduct involving WLFI tokens. According to the lawsuit, Sun invested about $75 million in WLFI through entities he controls, but later engaged in activity the company says harmed the token and its ecosystem.
WLFI alleges that Sun short-sold WLFI tokens and made straw purchases on behalf of other investors. The company also claims his public statements were designed to pressure WLFI into restoring access to his frozen tokens.
In a post on X, the company stated,
This is about the integrity of decentralized finance.
Token freeze is at the center of the fight
The issue escalated after WLFI froze Sun’s tokens, saying the action was allowed under its terms and agreements. Sun denied the misconduct allegations and filed his own lawsuit in April, accusing WLFI of blocking his role in governance.
The company argued that Sun did not try to resolve the matter privately, and that he accused its governance process of being unfair and illegitimate. WLFI rejected those claims, saying the freeze function was disclosed in its terms.
The company also believes that Sun used influencers and bots to amplify negative claims.
Both lawsuits could take time to resolve
As it stands, the company is seeking damages and has asked for a jury trial. Sun’s previous case also seeks damages, a jury trial, and the unfreezing of his tokens.
We are taking legal action to hold Sun accountable.
Both lawsuits are pending, and the outcome could take months… or even years.
Final Summary
- World Liberty Financial has sued Justin Sun for defamation.
- This, after freezing tokens tied to his $75 million investment.
