Trump-Linked World Liberty Financial Files Countersuit Against Justin Sun for Defamation

World Liberty Financial (WLFI) has sued Tron founder Justin Sun in response to the lawsuit that the crypto founder filed against the Trump-backed project. As part of the suit, the WLFI team alleged that Sun threatened to crash the WLFI token if they did not meet his demands.

World Liberty Financial Sues Justin Sun

In an X post, the DeFi project announced it is filing a lawsuit against Justin Sun for defamation. The team alleged that the Tron founder has launched a coordinated media smear campaign against the project and has refused to stop even when confronted with the truth.

This follows Sun’s lawsuit against the DeFi project. The crypto founder sued World Liberty Financial to protect his rights as a WLFI holder after they froze his tokens last year and threatened to permanently destroy them by burning them.

Meanwhile, the Trump-backed project claimed that Sun launched the defamatory campaign in conjunction with press outlets. The team claimed in the X post that the Tron founder organized this campaign to drive the WLFI token price “to shit.”

World Liberty Financial cited a New York Times article, noting that the outlet and other platforms had previously covered the SEC’s accusation that Justin Sun committed fraud. “Yet in its desire to smear the Trump and Witkoff families, these outlets promoted his defamatory claims. They should be ashamed of themselves,” the team added.

The DeFi project also mentioned that the Tron founder didn’t seek a “good faith resolution.” Instead, they alleged that he called the project’s governance a scam, claimed that the project installed backdoors, and accused the team of treating the community as an ATM.

Additionally, the lawsuit also claims that Sun didn’t defame World Liberty Financial himself. The crypto founder “weaponized his money” by allegedly hiring influencers and deploying bots to amplify his “lies” across social media.

Justin Sun’s Claims Are “Demonstrably False”

World Liberty Financial also mentioned that Justin Sun’s claims are demonstrably false. They noted that the authorized freeze function that the Tron founder complains about was disclosed in their Terms of Sale and his own agreements.

The team added that the governance process is transparent and community-driven. However, the founder of the top layer-1 network still went ahead to weaponize his platform to spread lies to more than 4 million followers. The DeFi project claimed that the lawsuit is about protecting the integrity of decentralized finance.

“When a major investor tries to destroy the project’s reputation, it threatens the trust of every holder. We cannot allow that,” they said. As such, they are taking legal action to hold the Tron founder accountable for defamation.

In response, Sun stated that World Liberty Financial’s lawsuit against him is nothing more than a “meritless PR stunt.” He added that he stands by his actions and looks forward to defeating the case in court.