- World Liberty Financial has officially submitted an application Defamation Justin Sun sued for harming the project’s reputation.
- According to the official post on X, an entity associated with Justin Sun unfairly transferred a large number of tokens, forcing them to take action against him and freeze his token holdings.
- Justin Sun was allegedly running a A coordinated media smear campaign against universal freedom as he wanted Pushing the token price to “shit.”
The conflict between World Liberty Financial (WLFI) linked to the Trump family and Justin Sun is getting worse with each passing day. On Monday, World Liberty Financial shared a post on its official X (formerly Twitter) handle, in which the DeFi project revealed that it had submitted an application Defamation A lawsuit is being filed against Justin Sun, founder of the TRON blockchain.
In the matter, World Liberty Financial accused Justin Sun of firing A A coordinated media smear campaign against universal freedom. He also allegedly ignored warnings when the DeFi project tried to confront him with the truth.
What World Liberty Financial says about the lawsuit against Justin Sun
The legal action was unveiled on May 4 following a previous lawsuit filed by Justin Sun against the project. WLFI has made some serious allegations against Justin Sun, who was one of the main investors in the project. WLFI stated that Justin Sun intentionally published false and misleading statements about his project to damage his reputation. By doing so, he allegedly wanted to intimidate users and investors and obtain a financial benefit for himself.
According to the official statement, this conflict began when Blue antheman entity linked to Justin Sun, purchased a large number of WLFI tokens. “In November 2024, Blue Anthem was acquired by Kayan Sun $ Wolfie Symbols. The Sun entities subsequently engaged in prohibited transactions, including transfers of ownership $ Wolfie Binance tokens,” the post said.
After some time, the entity associated with Justin Sun transferred some tokens in ways that violated the agreed-upon rules. In response, the project has decided to freeze these tokens to protect the project and the community. This decision was also shared in signed and public documents. According to the project, this was the pain point where Justin Sun was disappointed.
The project stated in a post on
Instead of resolving the matter privately, Justin Sun launched a public attack on social media. Using his large number of followers on
WLFI argues that Sun knew those statements were false or made them without caring about the truth, even though he had previously publicly praised the project and said he fully approved of it.
“Sun’s claims are patently false. The licensed freezing functionality that Sun complains about is disclosed in our terms of sale and his own agreements. The governance process is transparent and community-driven. Yet he has used his platform as a weapon to spread lies to his over 4 million followers,” the post stated.
WLFI allegedly reported that Sun launched a campaign after they rejected his demands. They say he even threatened, through his lawyers, to set World Liberty on fire with lawsuits if the project didn’t surrender. His intention was to reduce the price of the token to “insignificance.”
In the lawsuit, World Liberty Financial is asking the court for financial damages and a public retraction, which means a correction and apology from Justin Sun. They describe their introduction as legal as a last resort to protect token holders, the team, and the entire community.
What is the story of Justin Sunside?
In response to this counterclaim, Justin Sun shared a post on X, calling it a PR stunt. “As an investor, I have a clear conscience and look forward to winning in court,” he said.
(source: Justin Sun on X)
Justin Sun said he invested tens of millions of dollars because he believes the project follows the rules of decentralization.
According to Sun, the dispute started when WLFI secretly integrated dangerous features into the smart contract. Sun claimed They installed a blacklist function in the backdoor which was not properly disclosed to investors. This allowed the anonymous team or wallets to freeze their tokens without any valid reason.
According to Justin Sun, this freeze was unfair and targeted. After some of its tokens became tradable, WLFI froze a significant portion of its holdings. He stated that he was treated differently from other investors and that the freeze occurred after he refused pressure to invest more money, specifically hundreds of millions, in the project’s stablecoin and other initiatives.
He also criticized World Liberty Financial for using anonymous multi-signature wallets and a single custodian address that can freeze anyone’s tokens. He described this mechanism as a dictatorship.
“I have tried in good faith to resolve this situation with the World Liberty project team without resorting to litigation. But the project team has denied my requests to unfreeze my tokens and restore my rights as a token holder. They have left me no choice but to resort to the courts.”
WLFI stock rises 10% after hitting all-time lows
On May 4, WLFI12.90% The token saw a 10% rise on the daily chart following the lawsuit filed by the project against Justin Sun. This recovery is helping the cryptocurrency rise $0.06531 With an impressive market value around $2.07 billion, according to CoinMarketCap. This bullish momentum is coming into the cryptocurrency Amid bullish sentiment in the cryptocurrency market in general after… Bitcoin Break above $80,000.
The rally in the cryptocurrency comes after WLFI hit an all-time low on May 2, falling below $0.05201 following a lawsuit filed by Justin Sun and regulatory challenges from Democrats. This uptrend in the cryptocurrency may provide temporary relief after the long free fall in the cryptocurrency. It will boost investor confidence.
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