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The ongoing legal clash between blockchain billionaire Justin Sun and 
World Liberty Financial has further escalated, with the Trump-backed crypto project countersuing Sun for spreading "demonstrably false" claims about its WLFI token.
What's the Scoop?
- Initial Accusation: In mid-April, Justin Sun rebuked World Liberty Financial for its WLFI token “backdoor blacklisting function,” which gives the team issuer, “unilateral power to freeze, restrict, and effectively confiscate the property rights of any token holder, without notice, without cause, and without recourse.” Shortly after leveling the accusation, Sun escalated his dispute to court, suing the crypto project for extortion, alleging that World Liberty Financial wrongfully froze his tokens, blocking his participation in governance and removing his ability to vote on proposals while threatening to permanently burn his holdings without justification.
- WLFI Countersuit: World Liberty Financial has now filed a defamation countersuit against Justin Sun, accusing him of orchestrating a “scorched-earth” social media campaign after his tokens were frozen. The World Liberty Financial team alleges that Sun used bots, influencers, and public attacks to pressure the team into unlocking his funds, claiming he opened short positions against WLFI as part of a "defamatory smear campaign in conjunction with press outlets that gleefully shared his lies" designed to drive the price of WLFI tokens "to shit," a direct quote attributed to Sun.
- Demonstrably False: In a public statement posted to X, World Liberty Financial wrote that, "Sun's claims are demonstrably false. The authorized freeze function Sun complains about was disclosed in our Terms of Sale and his own agreements."
Today, we are filing a lawsuit against Justin Sun for defamation. Sun has launched a coordinated media smear campaign against World Liberty Financial and refused to stop even when confronted with the truth.
— WLFI (@worldlibertyfi) May 4, 2026
Here's the story.🧵
