Trump Family’s World Liberty Claims in Lawsuit That Justin Sun Shorted WLFI, Crashed Price

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In brief

World Liberty Financial sued Justin Sun, accusing him of shorting WLFI and past defaming the company.
The suit claims Sun ran a coordinated run to thrust down the terms of the Trump family's token.
The filing follows Sun’s ain caller suit against World Liberty implicit the firm's freezing of his tokens.

The Trump family’s crypto firm, World Liberty Financial, filed a suit Monday against Tron laminitis Justin Sun, accusing the crypto entrepreneur of shorting their token past autumn and past defaming the institution erstwhile his holdings of the plus were frozen.

The suit comes conscionable weeks aft Sun himself—one of the largest holders of the company’s WLFI token—filed a suit against World Liberty, accusing the institution of improperly freezing his investment.

Monday’s lawsuit, filed by World Liberty successful Florida authorities court, accuses Sun of backing “a large, deliberate, short-selling run designed to suppress $WLFI's price” erstwhile the token launched for nationalist trading backmost successful September.

World Liberty claims it past froze Sun’s monolithic token presumption to “prevent further harm” to the institution and its token holders—a close the institution says it ever had pursuant to Sun’s token unlock agreement.

Shortly thereafter, Sun made nationalist pleas to World Liberty to unfreeze his tokens, arguing helium had done thing improper.

Per today’s lawsuit, Sun past began privately threatening litigation against the Trump family’s crypto firm, allegedly claiming his suit would “light World Liberty connected fire” and origin WLFI’s terms to “go to shit.”

Sun yet did record a suit against World Liberty past month, claiming helium remains an ardent protagonist of President Donald Trump, but that the president’s institution violated his rights arsenic an capitalist by improperly freezing his tokens.

The alleged defamation suit that World Liberty announced connected X contiguous is thing much than a meritless PR stunt. I basal by my actions and look guardant to defeating the lawsuit successful court.

— H.E. Justin Sun 👨‍🚀 🌞 (@justinsuntron) May 4, 2026

In a drawstring of societal media posts astir that time, Sun besides accused World Liberty’s operators of treating “the crypto assemblage arsenic a idiosyncratic ATM” and labeled the company’s leaders—among them, respective members of the Trump family—as “bad actors.”

In today’s lawsuit, World Liberty argued specified statements were defamatory and “profoundly harmful” to the company. The steadfast besides accused Sun of hiring societal media influencers and deploying social-media “bot” accounts “to amplify his lies.”

This morning, Sun dismissed the suit arsenic “a meritless PR stunt” successful a station connected X, and said helium looks guardant to defeating the accusations successful court.

Sun has historically been 1 of the biggest backers of the Trump family’s sprawling crypto empire. In summation to buying up tens of millions of dollars worthy of the WLFI token, helium besides purchased millions of dollars worthy of the president’s Solana-based meme coin (TRUMP) past year, and claimed to beryllium the asset’s apical holder.

Earlier this year, the Trump SEC moved to settle its yearslong fraud lawsuit against Sun, a determination that reportedly prompted the agency’s caput of enforcement to soon thereafter resign.

But Sun’s narration with the Trumps has frayed successful the past fewer months. Late past month, erstwhile the president hosted a Mar-a-Lago bash for apical holders of his meme coin, Sun was notably a no-show.