World Liberty Finance (WLFI) filed a lawsuit against Justin Sun for allegedly running a planned campaign, a “defamatory smear campaign,” to spread false information about the project, using influencers and bots on X to harm its reputation and push down its token’s value.
In a series of posts on X, WLFI alleged that Sun deliberately spread false claims about the platform in an effort to damage its reputation and drive down the value of its token. According to the company, Sun’s actions were “coordinated, paid for, and deliberate,” involving influencers and automated accounts to amplify the message.
As reported earlier by Coinpedia, Justin Sun had already filed a lawsuit in a California court against World Liberty Finance, claiming his tokens were frozen, his voting rights were removed, and he was excluded from governance decisions. He said he tried to resolve the issue privately but moved to legal action after the team refused to restore his access. Sun also raised concerns about strict new governance rules and alleged hidden controls in the system, which WLFI denied.
Why Did World Liberty Finance File a Lawsuit Against Justin Sun?
WLFI claims that in November 2024, an entity linked to Sun, identified as Blue Anthem, purchased a significant amount of WLFI tokens. The company later accused Sun’s affiliated entities of engaging in “prohibited transactions,” including transferring tokens to the major crypto exchange Binance.
The dispute appears to have intensified after WLFI exercised what it described as a contractual right to freeze certain tokens to “protect the ecosystem.” The company maintains that this capability was clearly disclosed in its terms and agreed upon by investors.
Rather than pursuing a resolution, WLFI alleges that Sun responded by publicly attacking the platform, labeling its governance a “scam” and accusing it of installing “backdoors” and exploiting its community.
Also Read : EXCLUSIVE: $300M WLFI Investor Breaks Silence on Justin Sun Lawsuit
Media and Regulatory Context
WLFI also criticized major media outlets, including The New York Times, for allegedly amplifying Sun’s claims. The company pointed out that Sun has previously faced scrutiny from the U.S. Securities and Exchange Commission, which has accused him of fraud in earlier cases.
In its statement, WLFI suggested that media coverage was biased and driven by an intent to target political figures, referencing connections to the Donald Trump and Witkoff families, though it did not elaborate on the nature of those ties.
Also Read : World Liberty Financial (WLFI) Price Prediction 2026, 2027 – 2030
Legal Action Underway
WLFI confirmed it is initiating legal proceedings against Sun for defamation. The company says the lawsuit aims to hold him accountable for reputational damage and to defend the integrity of its platform.
“This is about the integrity of decentralized finance,” WLFI stated, emphasizing that actions by prominent investors can undermine trust across the entire crypto ecosystem.
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