World Liberty Financial, a cryptocurrency company linked to US President Donald Trump and his family, filed a lawsuit in Florida state court against Tron founder Justin Sun, alleging defamation and malicious conduct. The company argued that Sun’s actions regarding WLFI tokens caused serious harm to both the company and the broader community.
Countersuit Against Sun’s Accusations
Shortly before the lawsuit, Justin Sun filed his own lawsuit in a federal court in California. Sun’s application was that World Liberty had unfairly blocked its right to transfer its holdings of WLFI tokens. In its new lawsuit, World Liberty claimed that Sun and related organizations purchased WLFI tokens by proxy on behalf of other investors, and furthermore, that these tokens may have been subject to short positions on the stock exchanges.
According to the company’s claims, WLFI tokens in Sun’s account were frozen to protect possible market manipulations and the company’s interests. In Sun’s complaints on blockchain and social media, it was argued that the public was misled and misleading and slanderous words were made.
Allegations of Manipulation and Price Pressure
World Liberty alleged in the lawsuit that Justin Sun colluded with influential people on social media to spread misleading narratives. Additionally, the company stated in its statements that “certain job opportunities were lost” as a result of this campaign.
According to the case file, some sections were suppressed; In particular, details of Sun’s token purchases and specific irregularities were not made public. One of the serious accusations made by the company was that Sun-affiliated wallets carried out a deliberate and large-scale short selling operation during WLFI’s IPO, moving $300 million to the Binance exchange.
“When we discovered the violations in question, we contractually froze the tokens under Sun’s control. We did this to prevent harm to both World Liberty and the WLFI community. Sun knew in advance that such a step would be taken,” World Liberty Financial said.
Contracts and Information Integrity
In the documents submitted by the company to the court, it was constantly emphasized that Sun was clearly aware of the right to freeze token transfers, although he caused surprise in his social media posts. In addition, it was stated that Sun had prior knowledge of the limitations in the contract, and even the public knew about these restrictions.
The grounds for the lawsuit included slander, a claim for damages, compensation for the costs incurred, and a call for Sun to retract his words. World Liberty Financial attracts attention as one of the new players in the cryptocurrency market and has recently maintained its place on the agenda with its connections in US politics. Tron’s founder, Justin Sun, is one of the central figures in the crypto ecosystem.
