World Liberty Financial has filed a defamation lawsuit against TRON founder Justin Sun in Florida, accusing him of running a "short-and-distort" scheme: secretly shorting <a class="ticker-mention" href="/en-US/token/wlfi">$WLFI</a> while publicly promoting it to retail buyers. The suit further alleges Sun violated investment terms, executed unauthorized token transfers, and launched coordinated public attacks after WLFI froze his holdings.
The legal clash is a two-front war. Sun had already sued WLFI for fraud, claiming the Trump-affiliated project coerced him and improperly froze his assets. WLFI's new filing is a direct counter-strike, reframing Sun as the aggressor who weaponised his public platform to profit from a token he was simultaneously undermining.
With both sides now holding active suits, the dispute puts the governance and investor-relations practices of a high-profile politically connected crypto project under court scrutiny.
TheBlock