WLFI sues Justin Sun over defamation and token freeze
6.6 Regulation WLFI sues Justin Sun for defamation, alleging he led a smear campaign after WLFI froze his tokens for violating sale terms. Sun had previously sued WLFI, escalating the dispute.
World Liberty Financial (WLFI), a crypto project linked to the Trump family, has filed a defamation lawsuit against Justin Sun in Florida. WLFI alleges that Sun orchestrated a coordinated smear campaign to damage its reputation and depress the value of its $WLFI token. This dispute began after WLFI froze tokens held by Sun’s entity, Blue Anthem, citing breaches of token sale terms, including unauthorized transfers and suspected short-selling. WLFI claims Sun retaliated by hiring influencers, deploying bots, and spreading false allegations to millions. These included claims of a hidden backdoor in WLFI’s smart contracts and fraudulent governance. The lawsuit seeks monetary damages and a court order for Sun to retract his statements. This legal battle escalates an ongoing conflict, as Sun had previously sued WLFI in California, alleging illegal token freezing and secret blacklist features. Both parties deny each other’s accusations, with WLFI insisting its actions were transparent and contractually justified.
