World Liberty Files Defamation Lawsuit Against Justin Sun Amid Allegations of Misrepresentation

World Liberty Financial Sues Justin Sun for Defamation

World Liberty Financial, a Trump-linked project, has filed a lawsuit against billionaire crypto entrepreneur Justin Sun for defamation. The lawsuit accuses Sun of running a coordinated media campaign against World Liberty Financial after Sun filed his own lawsuit against the project last month.

According to the lawsuit, Sun engaged in improper transfers, conducted straw purchases, and shorted the tokens. It alleges that Sun acquired tokens for undisclosed individuals through straw purchases, in which one entity purchases an asset on behalf of another person. The lawsuit claims that Sun's actions were designed to extract hundreds of millions of dollars from World Liberty Financial.

Justin Sun's Response

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Sun has denied the allegations, calling the lawsuit a "meritless PR stunt." In a statement, Sun said he stands by his actions and looks forward to defeating the case in court.

The counter-suit escalates a legal dispute that has become one of the most public ruptures in crypto this year. Sun sued World Liberty Financial alleging extortion and an illegal scheme to seize his tokens, charges the project's co-founders denied.

The Dispute Unfolds

The dueling lawsuits mark a new phase in a dispute that has become the most public unraveling of a Trump-linked business venture since the president took office. World Liberty Financial has filed the lawsuit as a last resort to correct the record and protect its token holders, employees, and stakeholders.

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According to Tom Clare, attorney for World Liberty Financial, "Rather than acting in good faith, Justin Sun chose to defame World Liberty — repeatedly, publicly, and to millions of followers. We are eager to expose the falsity of Sun's statements in court and in public."

Key Figures

• Justin Sun: billionaire crypto entrepreneur and defendant in the lawsuit
• World Liberty Financial: Trump-linked project and plaintiff in the lawsuit

Timeline

• Last month: Justin Sun filed his own lawsuit against World Liberty Financial
• May 4, 2026: World Liberty Financial files a lawsuit against Justin Sun for defamation