World Liberty Financial takes Justin Sun to court, what happened?
World Liberty Financial said it is filing a lawsuit against Tron founder Justin Sun for defamation. The project announced the case in a thread on X and accused Sun of running a media campaign against the WLFI token project.
Summary
- WLFI says Justin Sun defamed the project after tokens linked to his entities were frozen.
- Sun previously sued WLFI, claiming the project froze tokens and removed his governance rights unfairly.
- The dispute now includes competing lawsuits, blacklist claims, governance concerns, and public online defamation allegations.
WLFI claimed Sun spread false statements after the project froze tokens linked to his entities. The team said Sun refused to stop after it challenged his claims. It also alleged that his comments aimed to damage the project’s reputation and token value.
According to WLFI, Sun’s entity, Blue Anthem, bought WLFI tokens in November 2024. The project later said Sun-linked entities carried out prohibited transactions, including transfers of WLFI tokens to Binance.
WLFI said it used its right to freeze the tokens to protect the ecosystem. The project stated that the freeze function was allowed under its Terms of Sale and Sun’s own agreements. It also said the governance process remains transparent and community-based.
WLFI rejects claims over governance and controls
The project said Sun accused it of adding backdoors, harming governance, and treating holders unfairly. WLFI denied those claims and said Sun used public posts, influencers, and bot activity to spread his position.
WLFI wrote that Sun called its governance a “scam” and accused the project of treating the community as an “ATM.” The project said those claims were false and damaging. It also said the dispute raises wider questions about trust in decentralized finance.
Sun had already sued World Liberty
The new lawsuit follows earlier legal action from Sun against World Liberty Financial. As we reported in April, Sun said he filed a case in a California federal court after the project allegedly froze his WLFI tokens and blocked his governance voting rights.
Sun said the freeze removed his ability to vote and threatened his holdings. He stated, “They wrongfully froze all of my tokens, stripped me of my right to vote on governance proposals, and have threatened to permanently destroy my tokens by ‘burning’ them.”
Additionally, the dispute also grew after Sun claimed WLFI contracts included an undisclosed blacklisting function. He alleged that the function could “freeze, restrict, and effectively confiscate” investor tokens. World Liberty rejected the claim and warned that legal action could follow.
Sun has said his lawsuit does not change his support for President Donald Trump or the administration’s crypto policy. He said his complaint targets individuals linked to the project, not Trump himself.