Overview
- World Liberty Financial filed a defamation case in Miami-Dade County on Monday, alleging Justin Sun ran a smear campaign after the company froze his WLFI tokens over suspected rule breaches.
- Sun called the suit a meritless PR stunt and pointed to his April 21 federal complaint in California, which alleges World Liberty secretly built a blacklist tool into the WLFI smart contract and unlawfully blocked his transfers and voting rights.
- World Liberty says its right to freeze tokens was disclosed in sale terms and accuses Sun-linked entities of straw purchases, short selling around the September 2025 launch, and large transfers to exchanges, citing activity it ties to wallets that moved about $300 million to Binance.
- The WLFI token rose roughly 12% over the past day after the filing, based on several trackers, though it still trades far below its level when public trading began on September 1, 2025.
- Both lawsuits remain at the pleading stage with no court rulings, and the outcome may hinge on the token agreements, any smart‑contract controls, and whether Sun’s posts—amplified by influencers and bots, according to World Liberty—are protected opinion or defamatory claims.