Summary
- World Liberty Financial, which is linked to the family of US President Donald Trump, has filed a defamation lawsuit against major early investor Justin Sun, according to the report.
- The two sides are continuing their legal fight over about $240 million in frozen assets, with each alleging fraud and breach of contract.
- The market is watching whether the dispute could broaden alongside conflict-of-interest concerns surrounding crypto projects tied to President Trump.
Forecast Trend Report by Period
World Liberty Financial, a crypto project linked to US President Donald Trump's family, has filed a countersuit against Justin Sun, Fortune reported, as the clash between the two sides escalates into a legal dispute.
World Liberty Financial filed a defamation lawsuit against Sun in a Florida court, Fortune said on May 4. The move followed Sun's earlier fraud allegations against the project.
World Liberty Financial alleged that Sun waged a "systematic pressure campaign" against the project. It said he spread false claims while pressing for the release of tokens he held in large amounts.
Sun is a major early investor in the project and has invested about $200 million. The dispute was triggered after some of those tokens were frozen. The frozen assets are estimated at about $240 million.
World Liberty Financial also alleged that Sun violated contract terms by purchasing tokens through third parties, Fortune reported. Sun, meanwhile, filed a separate lawsuit in April, arguing that the project had unfairly restricted the disposal of his assets.
The two sides are pressing claims against each other in court, with each alleging fraud and breach of contract. The market is watching whether the dispute could fuel broader conflict-of-interest concerns surrounding crypto projects tied to President Trump.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
