Overview
- World Liberty Financial filed a defamation lawsuit in Florida state court on Monday, accusing Justin Sun of running a coordinated smear campaign to damage the project and its WLFI token.
- WLFI’s complaint says Sun shorted the token, funneled governance‑enabled WLFI to Binance, and used straw purchases to hide his role while trying to push the price lower.
- Sun rejected the filing as a meritless PR stunt and pointed to his April federal lawsuit in California that claims WLFI froze his holdings, stripped his voting rights, and used a hidden blacklist to control wallets.
- WLFI counters that its power to freeze tokens was disclosed in its Terms of Sale and token agreements, framing the freeze as enforcement of deal terms rather than retaliation.
- The token rose about 12% after the filing but remains far below its September 2025 launch price; Sun holds roughly 4 billion WLFI, valued near $264 million, and both sides’ allegations remain unproven as the cases proceed, with outcomes likely to influence expectations for disclosure and issuer control in crypto.