The Daily Beast reported on May 4 that the cryptocurrency project “World Liberty Financial” (WLFI), co-founded by U.S. President Donald Trump and his children, has recently filed a defamation lawsuit in Florida against cryptocurrency entrepreneur Justin Sun, accusing him of orchestrating a coordinated public opinion attack.
At the same time, related reporting from the New York Post further revealed that the dispute has escalated from a commercial disagreement into an intense confrontation centered on “market manipulation and information warfare.”
According to The Daily Beast, Justin Sun filed a lawsuit against WLFI as early as April, alleging that the platform froze tens of millions of dollars worth of his WLFI tokens and restricted his ability to sell assets, resulting in potentially massive financial losses.
In response, WLFI filed a counterclaim in Florida, accusing Justin Sun of violating token trading rules, including nominee holding arrangements, improper asset transfers, and involvement in short-selling activities. WLFI emphasized that the freezing of assets was a legitimate measure to protect the ecosystem.
Allegations of ‘short selling and market manipulation’ emerge
The New York Post cited court filings stating that WLFI accuses Justin Sun of publicly supporting the project while secretly engaging in “short-and-distort” tactics to drive down the price of WLFI tokens.
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The report also claims WLFI believes Sun used social media influencers and automated accounts to spread negative information, amplifying market fear and influencing trading expectations.
In a public statement, WLFI said these actions were “coordinated and strategically intended,” with the goal of undermining market confidence and damaging the project’s valuation.
In response to the allegations, Justin Sun stated that the lawsuit “lacks factual basis” and said he will actively defend himself in court.
Several media outlets noted that Justin Sun has previously made substantial investments in Trump-family-related crypto projects, including approximately $100 million in the “$TRUMP” meme coin, making him one of the most significant external investors in the ecosystem.
The lawsuit not only reflects a commercial dispute but also highlights ongoing tensions in the rapidly expanding cryptocurrency industry around information dissemination, price volatility, and regulatory boundaries.
