The Trump family-linked crypto company World Liberty Financial has filed a defamation lawsuit against TRON founder Justin Sun, escalating a feud that has been simmering for months. The firm announced the move in an X thread today, May 4.

According to World Liberty Financial, Sun “engaged in prohibited transactions,” including allegedly transferring tokens to Binance. Last September, as The Defiant reported at the time, World Liberty blacklisted a wallet associated with Sun containing 500 WLFI. Reports said Sun had transferred some of the funds to another exchange, HTX.

In its X post today, World Liberty Financial alleges that Sun then “launched a coordinated media smear campaign” against the company.

In November 2024, Sun announced he had become the largest investor in World Liberty Financial after a $30 million purchase of WLFI. He went on to invest another $45 million in the firm.

The defamation lawsuit is the latest in a public feud between the two parties since the wallet blacklisting. Just last month, Sun filed a lawsuit against World Liberty Financial alleging that the firm wrongfully froze his WLFI holdings, blocked his token holder governance rights, and threatened to burn Sun’s tokens.

Notably, World Liberty’s defamation lawsuit doesn’t appear to address or deny Sun’s allegations directly, but rather focuses on alleging a “coordinated smear campaign” to attack the company’s reputation.

Sun responded to the lawsuit on X today, calling it “nothing more than a meritless PR stunt,” adding:

“I stand by my actions and look forward to defeating the case in court.”

This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.