World Liberty accuses Justin Sun of ‘misconduct’ in response to Tron founder’s defamation claims
Co-founder Eric Trump went further, saying the only thing more ‘ridiculous’ than Sun’s lawsuit is a $6 million banana duct-taped to a wall.
What to know:
- Justin Sun has sued Trump-family-backed World Liberty Financial in federal court, alleging the DeFi venture illegally froze roughly four billion WLFI tokens he values at about $1 billion.
- World Liberty has publicly dismissed the lawsuit as a meritless and “desperate” deflection while accusing Sun of unspecified misconduct, but it has not detailed those allegations.
- Sun’s complaint says World Liberty has privately blamed him for a 40% WLFI price crash, alleged short-selling, acting as a straw purchaser, improper exchange transfers and KYC issues, claims he denies as unsupported, and the firm has yet to formally respond in court.
Sun filed a complaint Monday in the Northern District of California, accusing World Liberty Financial of illegally freezing roughly four billion $WLFI tokens worth around $1 billion. The Trump-family-backed DeFi venture’s informal Tuesday response dismissed the suit as a “desperate” deflection and pledged to keep protecting its users, with co-founder Zach Witkoff accusing Sun of “misconduct.”
Justin Sun’s recent lawsuit against @worldlibertyfi is a desperate attempt to deflect attention from Sun’s own misconduct. His claims are entirely meritless, and World Liberty looks forward to getting the case thrown out promptly.
He engaged in misconduct that required World…
— Zach Witkoff (@ZachWitkoff) April 22, 2026
Neither he nor the company spelled out Sun’s alleged misconduct. A spokesperson for the firm declined to comment, instead referring CoinDesk to Witkoff and fellow co-founder Eric Trump’s posts on X.
