WLFI sues Justin Sun for defamation as frozen-token dispute escalates into full legal war.

World Liberty Financial has filed a defamation lawsuit in Florida state court against Tron founder Justin Sun, alleging he made false statements to millions of followers on X after the Trump-linked venture froze roughly 4 billion WLFI tokens held through entities affiliated with him. Sun had been one of World Liberty's earliest major backers, committing at least $30 million through an affiliated entity called Blue Anthem before the relationship collapsed ahead of WLFI's public trading launch.

World Liberty's complaint goes further than reputation damage — it accuses Sun of straw purchases, prohibited token transfers, and short-selling activity around WLFI's debut. Sun's own separate lawsuit frames the same events as an unjustified asset freeze that stripped him of governance rights and threatened destruction of tokens he says were once worth more than $1 billion.

Sun dismissed the…