World Liberty Financial, the Trump family's flagship cryptocurrency venture, has filed a defamation lawsuit against Chinese crypto mogul Justin Sun, escalating a bitter legal and social media feud. The suit, filed in Florida state court, accuses Sun of launching a "scorched-earth pressure campaign" after Sun previously sued the firm over frozen assets.
The Backstory
Sun invested over $45 million in World Liberty Financial and millions more in President Trump's meme coin, $TRUMP. However, relations soured when World Liberty froze Sun's assets, citing alleged misconduct including suspected short selling and straw purchases of its $WLFI token. Sun responded with a lawsuit last month, accusing the firm of improperly freezing his investment.
The Latest Legal Battle
In Monday's filing, World Liberty claims Sun "weaponized his money and influence" by hiring influencers and deploying fake bot accounts to spread lies. The suit asserts his actions were "aimed at burning World Liberty to the ground." Sun dismissed the lawsuit as a "meritless PR stunt" and vowed to defeat it in court.
Political and Market Implications
Donald Trump Jr., a co-founder, rallied supporters to read the full legal thread. The feud marks a dramatic collapse of a once-lucrative partnership. Sun previously settled a civil fraud case with the SEC for $10 million, drawing criticism as a favorable outcome.
Eric Trump and Donald Trump Jr. at the Nasdaq opening bell in August 2025.
This ongoing saga highlights the volatile intersection of crypto, politics, and high-stakes litigation.
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