Trump’s World Liberty Financial sues crypto billionaire Justin Sun in escalating token feud

World Liberty Financial (WLFI), the Trump family’s controversial crypto project, has escalated its public feud with Justin Sun, the Hong Kong-based billionaire entrepreneur who helped jumpstart the venture. On Monday, WLFI filed a defamation lawsuit in Florida state court accusing Sun of orchestrating a “public smear campaign” designed to tank the value of WLFI tokens and harm investors.

According to the lawsuit, Sun allegedly transferred WLFI tokens with voting rights to the Binance exchange and engaged in short selling — betting the token’s price would fall — as the token began public trading in September 2025. WLFI CEO Zach Witkoff claimed Sun knowingly spread falsehoods to damage the company’s reputation and the interests of token holders.

Sun pushed back, dismissing the lawsuit as a “meritless PR stunt” and vowed to fight the case in court. This legal action follows Sun’s own lawsuit filed in April, which accused WLFI of illegally freezing his token holdings after trading commenced. Sun denied the short selling allegations in his suit, while WLFI insists its token freeze rights were clearly disclosed in the sale terms.

The WLFI token price briefly rallied about 12 percent after news of the lawsuit but remains down roughly 72 percent since it started trading. Sun’s 4 billion token stake is currently valued around $264 million. The bitter dispute marks a sharp reversal from their earlier relationship when Sun bought $45 million worth of tokens and was named an adviser — a move critical to WLFI’s initial fundraising and launch.

WLFI is the flagship crypto operation among several Trump family ventures cashing in on the unregulated digital asset craze. Reuters analysis shows the Trump family has already made more than $1 billion from WLFI, with 75 percent of token sale revenue going directly to them as outlined in the company bylaws. The project’s model raises serious questions about pay-to-play politics and self-dealing, using the presidency and family name to enrich insiders through opaque token sales.

This lawsuit drama shines a harsh light on the murky world of Trump-linked crypto schemes that combine political power, financial speculation, and legal battles. It underscores the urgent need for transparency and accountability in ventures that exploit both government influence and investor trust. We will keep tracking this story as it unfolds, exposing every dollar and deal that fuels authoritarian greed and corruption.