World Liberty Financial, a cryptocurrency venture co-founded by President Donald Trump and his sons, has filed a defamation lawsuit against billionaire investor Justin Sun. The lawsuit, filed in Florida state court, alleges that Sun launched a "public smear campaign" against the company, including false claims and coordinated social media attacks. The dispute escalates a prior legal conflict in which Sun sued World Liberty Financial in April, accusing the firm of illegally freezing his tokens worth up to $1 billion.
In its lawsuit, World Liberty Financial claims Sun engaged in "misconduct," including suspected short selling of the company's $WLFI token and straw purchases to conceal his identity. The company also alleges that Sun used influencers and fake social media accounts to amplify his claims. Sun has dismissed the lawsuit as a "meritless PR stunt" and vowed to defeat the case in court.
The legal battle marks the collapse of a once-mutually beneficial relationship, during which Sun invested over $45 million in World Liberty Financial and additional millions in President Trump's meme coin, $TRUMP. Earlier this year, Sun settled a separate civil fraud case with a $10 million payment.