A cryptocurrency venture linked to the Trump family has filed a defamation lawsuit against one of its most prominent early investors, marking a sharp escalation in a high-profile dispute within the digital assets sector.
The company, World Liberty Financial, accused crypto billionaire Justin Sun of launching a “smear campaign” to damage the firm’s reputation and depress the value of its WLFI token. The lawsuit, filed in Florida, alleges Sun engaged in coordinated actions—including public criticism and trading strategies such as short selling—to push down the token’s price after its launch.
World Liberty Financial claims Sun violated investment agreements by transferring tokens without authorization and betting against the project while publicly promoting it. The company says these actions harmed investor confidence and disrupted business deals.
Sun, who had invested tens of millions of dollars in the venture and previously served as an adviser, has rejected the allegations, describing the lawsuit as a “meritless PR stunt.”
The legal action comes after Sun filed his own lawsuit against the company, accusing it of fraud and “extortion” over the freezing of his token holdings—moves he says prevented him from selling assets worth hundreds of millions of dollars.
At the center of the dispute is control over digital tokens and governance rights. World Liberty maintains that its ability to freeze assets was clearly disclosed to investors, while Sun alleges the firm used hidden mechanisms to restrict access unfairly.
Founded in 2024, World Liberty Financial is a decentralized finance project tied to the Trump family’s expanding crypto business empire, which has generated significant revenues through token sales and related ventures.
The clash highlights growing tensions in the crypto industry, where high valuations, opaque governance structures and limited regulation are increasingly leading to legal battles between founders and investors.
As the case unfolds, it is likely to draw scrutiny not only for the scale of the الأموال involved but also for the political and financial influence surrounding one of the most high-profile crypto ventures in the market.
Original Source : https://www.ft.com/content/4c68055a-263f-4237-95c6-44fc77faad21
