Trump’s World Liberty Financial venture sues crypto entrepreneur for defamation

World Liberty Financial, a cryptocurrency venture co-founded by Donald Trump and his sons, has filed a defamation lawsuit in Florida against Hong Kong-based crypto entrepreneur Justin Sun. The lawsuit alleges Sun launched a "public smear campaign" by improperly transferring WLFI tokens and engaging in short selling to drive down the token's market price. World Liberty's CEO stated Sun knowingly made false claims to harm token holders. Sun, however, called the lawsuit a "meritless PR stunt" and stated he stands by his actions. This legal action follows a previous lawsuit filed by Sun against World Liberty, claiming the company illegally froze his tokens. The dispute marks a significant reversal from Sun's earlier support for the project.

World Liberty Financial, a cryptocurrency venture co-founded by Donald Trump and his sons, has filed a defamation lawsuit against Hong Kong-based crypto entrepreneur Justin Sun. The lawsuit, filed on Monday, alleges that Sun launched a "public smear campaign" with false claims. World Liberty Financial also accuses Sun of violating agreements by transferring tokens to the Binance crypto exchange. This legal action is an escalation of a dispute that began in April when Sun sued World Liberty Financial, claiming the company illegally froze his tokens after they became tradeable in September 2025. Sun alleged that World Liberty Financial secretly implemented measures to prevent him from selling his tokens.