World Liberty Financial Sues Justin Sun for Defamation as Dispute Escalates

World Liberty Financial, the Trump family-backed decentralized finance project, has sued Tron founder Justin Sun for defamation.

Cointelegraph reported on May 4 that World Liberty Financial filed the lawsuit in Miami-Dade County, Florida, alleging Sun harmed the project's reputation through false statements. The complaint also challenges transactions that it says violated the terms of the token sale.

Sun denied the allegations in a social media post, calling the case a baseless publicity stunt and vowing to fight it in court.

The suit comes about two weeks after Sun filed a separate lawsuit against World Liberty Financial over the freezing of tokens. The two sides have continued to clash over the token freeze and investor rights.

World Liberty Financial argues that Sun had prior knowledge of its authority to freeze tokens under the project's terms and conditions. Sun has maintained that the move was unjustified.

World Liberty Financial's token was trading at $0.0643 on Binance's USDT market, up about 9.54% over the past 24 hours.