- World Liberty Financial countered Justin Sun’s lawsuit in California with its own lawsuit in Florida.
- The Trump-backed company accused the crypto billionaire of defamation and sought compensation for the damages he caused.
The feud between World Liberty Financial (WLFI) and TRON (TRX) founder Justin Sun has risen by another notch. Following the latter’s rants on social media and lawsuit in California, the Trump-backed entity filed its own case against the crypto entrepreneur in Florida.
Justin Sun’s Allegations
Previously, Sun tuned up its beef with World Liberty Financial, accusing it of concealing a backdoor that allows it to unilaterally freeze, censor, or seize users’ assets without transparency or a proper governance process. Their conflict stemmed from the company preventing the TRON founder from accessing his WLFI tokens, which he bought for $75 million during the platform’s early stages.
Additionally, Sun highlighted that World Liberty’s seizure of his tokens stripped him of participating in the platform’s governance voting processes. The company’s refusal to accede to his requests led him to file a lawsuit in California seeking the court’s intervention to unfreeze his WLFI tokens and restore his governance rights as a token holder.
World Liberty Answers Back on Its Own Lawsuit
World Liberty earlier threatened Sun with a lawsuit over his allegedly disparaging remarks about the company and his refusal to honor their agreements. In response, Sun challenged its management and filed a case of his own.
On Monday, the Trump-backed decentralized finance (DeFi) platform answered back with a filing of its own case against Sun in Florida. The plaintiff accused the defendant of defamation and demanded a jury trial.
The complaint said Sun launched a “defamatory smear campaign in conjunction with press outlets” to besmirch World Liberty’s reputation. In addition, it stated that the crypto personality’s actions fueled negative connections to the Trump and Witkoff families, who are closely associated with the DeFi platform.
World Liberty insisted that it only exercised its power to freeze Sun’s WLFI tokens to protect its ecosystem, as it accused the entrepreneur of engaging in prohibited transactions. It included his attempt to move his WLFI holdings into Binance.
Moreover, the company denied the TRON founder’s claims that WLFI had a backdoor, treated its community as an ATM, and that its operations are a scam. Likewise, it argued that Sun weaponized his money, amplifying his lies across social media through paid platforms and personalities.
Given these allegations, World Liberty sought compensation for the damages arising from Sun’s actions, including reimbursement of legal costs. Furthermore, it asked the court to order the entrepreneur to retract all his defamatory statements.
