World Liberty Sues Justin Sun for Defamation Over Frozen Tokens

Tron founder Justin Sun faces a defamation lawsuit from World Liberty Financial, the Trump family-linked crypto platform where he invested heavily before his tokens were frozen.

World Liberty Financial attorney Tom Clare said Sun chose to defame the platform repeatedly and publicly to millions of followers rather than acting in good faith. The lawsuit filed Monday in the Eleventh Judicial Circuit Court for Miami-Dade County describes the legal action as a last resort to protect tokenholders and employees.

Sun denied the allegations on X, calling the lawsuit a meritless PR stunt. He said he looked forward to defeating the case in court. The lawsuit comes three weeks after Sun filed his own complaint against World Liberty on April 23, accusing the platform of an illegal scheme to seize his tokens.

World Liberty claims Sun violated the token sale terms and spread defamatory statements about the platform. The lawsuit alleges Sun engaged in short-selling WLFI tokens, conducted straw sales on behalf of others, and made false public statements after the platform blacklisted his address following a flagged ₱552.46 million ($9 million) transfer in September 2025. World Liberty's filing states Sun was fully aware of the platform's right to freeze user tokens to protect tokenholders and agreed to those terms.

Sun previously called World Liberty's proposed two-year lock-up period for early investors one of the most absurd governance scams he had ever seen. The platform's lawsuit claims Sun called the freezing authority a hidden trap door in a calculated effort to harm World Liberty while potentially benefiting his own financial positions. Governance concerns surfaced earlier when 76% of voting power in a March vote came from just 10 wallets. WLFI token rose 5% in the 24 hours before Monday afternoon but remains down over 80% since launch according to CoinMarketCap.