World Liberty Financial, a cryptocurrency firm co-founded by members of the Trump and Witkoff families, has initiated legal action against Justin Sun, a well-known figure in the crypto world, claiming he has orchestrated a smear campaign against them. The firm asserts that Sun, who has been an investor in World Liberty, is attempting to undermine their new crypto product out of self-interest.
Tom Clare, an attorney representing World Liberty Financial, expressed the seriousness of their response, saying, “Justin Sun chose to defame World Liberty — repeatedly, publicly and to millions of followers. World Liberty filed this lawsuit as a last resort to correct the record and protect its token holders, its employees, and all its stakeholders.” Clare indicated that they are determined to expose the alleged falsehoods spoken by Sun in both the courtroom and the public eye.
Sun, the founder of the TRON blockchain platform, had previously made headlines in November 2024 when he announced a significant investment of $30 million into World Liberty Financial, proclaiming himself their largest backer. His sentiments at the time emphasized the U.S. positioning as a blockchain hub, crediting former President Donald Trump’s influence in the narrative of crypto evolution.
However, tensions escalated over the past two years, leading World Liberty to accuse Sun of breaching agreements by allegedly betting against the company’s token, which could allow him to profit from its decline in value. Following this, World Liberty Financial reportedly froze Sun’s assets, prompting him to threaten public criticism unless they unblocked his holdings.
In response, members of the Trump family, including Eric and Donald Trump Jr., rallied support on social media platforms. They echoed claims made by Zach Witkoff, the son of Trump’s Special Envoy to the Middle East, accusing Sun of engaging in a “defamatory campaign” designed to damage World Liberty’s reputation among token holders.
World Liberty Financial asserts that they previously received positive endorsements from Sun, who characterized their project as vital to the cryptocurrency realm and aligned with his goals. Following the asset freeze, however, Sun shifted his narrative, launching public attacks on the company regarding its business practices and governance. His criticisms included warnings to potential customers about the company’s alleged ability to seize digital assets from holders without notification or justification.
Adding to the controversy, World Liberty Financial’s lawsuit claims that Sun employed fake social media accounts to amplify his disparaging remarks, which they argue misled the public. Sun’s assertions included claims that the firm intended to create mechanisms to undermine community trust, further straining their relationship.
The issue is compounded by Sun’s past legal challenges with the U.S. Securities and Exchange Commission (SEC), which accused him earlier of selling unregistered securities and market manipulation. Sun and the SEC reached a $10 million settlement earlier in the year, although he has consistently denied any wrongdoing.
As this legal battle unfolds, both parties are prepared to defend their positions in court, with World Liberty Financial emphasizing its commitment to integrity for its stakeholders in the cryptocurrency community.
