World Liberty files defamation suit against Justin Sun in token dispute

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World Liberty defamation lawsuit

Highlights

World Liberty filed a defamation lawsuit in Florida against Justin Sun, alleging gross misconduct, straw purchases, and short selling of WLFI tokens.
The complaint accuses Sun-linked wallets of moving $300 million to Binance to deliberately suppress WLFI's price at its public launch.
World Liberty claims Sun used influencers and bots to spread false claims after a token freeze, seeking damages, expenses, and public retraction.

Florida filing details allegations over WLFI trading

As reported by CoinDesk, World Liberty says in its Florida state court complaint filed Monday that Sun engaged in "gross misconduct" linked to WLFI tokens bought by his entities. The company alleges Sun-related entities used straw purchases for other investors and may have taken part in short selling of the token.

World Liberty claims the alleged misconduct included a deliberate campaign to suppress WLFI's price at the time of its public launch. The complaint ties that accusation to Sun-affiliated wallets allegedly moving $300 million to Binance, while several sections of the filing, including parts describing token purchases and the alleged conduct, were redacted.

The company says it froze Sun's tokens under its contractual rights to prevent further harm to itself and the broader WLFI community. In the filing, World Liberty argues Sun was already aware that the tokens could be restricted, and that his later public statements were therefore false and defamatory.

Broader legal and business risks for the crypto group

World Liberty also alleges that Sun hired influencers and used bots to amplify misleading claims after the freeze, adding that the company lost specific business opportunities as a result. It is seeking damages, expenses and a retraction of Sun's statements.

The lawsuit adds to the legal pressure around a high-profile crypto venture tied to U.S. President Donald Trump and his family. The parallel cases in Florida and California now put the dispute over token transfer controls, investor treatment and market conduct at the center of a broader reputational and commercial conflict.

Our earlier coverage of Trump Media and Technology Group’s performance detailed how the Trump-linked company has struggled to build a durable business, with weak revenue, steep losses, and a stock price down sharply from its peak. We also noted that diversification efforts into ETFs and crypto-related initiatives have yet to gain meaningful traction, leaving the group exposed to volatility, skepticism from investors, and heightened reputational risk.

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