World Liberty's Folkman defends $75M Dolomite loan, calls Justin Sun defamation suit 'cut and dry'

World Liberty Financial co-founder Zak Folkman pushed back on scrutiny over the project's roughly $75 million borrowing position on Dolomite, framing it as a "very, very small loan" designed to boost market utilization rates rather than signal financial distress. The characterization is notable given the absolute size of the position, though Folkman's argument centers on its scale relative to the protocol's overall liquidity.

On the legal front, Folkman confirmed World Liberty has retained Quinn Emanuel — one of the most prominent litigation firms in the US — for its defamation case against Justin Sun. The suit disputes Sun's claims that WLFI token freezes and a 20% unlock mechanic were deliberately concealed from investors. Folkman called the case "cut and dry," suggesting the project is confident in its legal footing.