On Monday, World Liberty Financial—a cryptocurrency firm linked to the Trump family—filed a defamation lawsuit in a Florida state court against Justin Sun, the creator of Tron. The lawsuit accused Sun of “gross misconduct” with WLFI tokens that Sun had purchased.
Recently, Sun sued World Liberty in a federal court in California, claiming that World Liberty had unjustly blocked his capacity to transfer his WLFI tokens. World Liberty said in its lawsuit filed on Monday that many businesses associated with Sun may have “engaged in short selling” WLFI tokens by purchasing them via straw purchases on behalf of other investors.
To Protect Itself and Wider Community
According to the complaint, Sun’s tweets expressing his dissatisfaction with World Liberty’s decision to freeze his WLFI tokens include false or defamatory material, and World Liberty froze them “to protect” itself and the wider community.
According to World Liberty, Sun reportedly used bots and influencers to “amplify his lies,” which caused the corporation to declare that it had missed out on certain corporate chances. Much of the case was removed, including language detailing Sun’s acquisition of the tokens and details on his alleged wrongdoing.
World Liberty claims that Sun-affiliated wallets transferred $300 million to Binance as part of a massive, intentional, short-selling effort to lower the price of $WLFI during its public debut. To avoid additional damage to World Liberty and the larger $WLFI community, World Liberty employed its contractual powers to freeze Sun’s companies’ tokens upon finding these breaches, according to the complaint. Sun was aware of this capacity long before this action was taken. The complaint said that Sun was aware of World Liberty’s capacity to freeze tokens before he tweeted about it.