Crypto Potato
April 5, 2026 2:31 PM UTC

WLFI Lawsuit Sparks Response: Justin Sun Calls It ‘Meritless’

The quickly deteriorating relationship between the former allies, the Trump-linked World Liberty Financial project and Justin Sun, took another step in the wrong direction earlier today. The DeFi project responded to Sun’s recent legal actions by filing its own defamation lawsuit in Florida, accusing him of spreading false claims to his millions of followers. WLFI also requested damages alongside a retraction. The tension between the two parties began several weeks ago when WLFI released a proposal to convert over 62 billion tokens from indefinite lock to a fixed vesting schedule. Holders who didn’t agree could have their tokens locked indefinitely, but they could still have used them for governance. Sun referred to the decision as “one of the most absurd governance scams” he had ever seen and claimed it penalizes dissent and turns participation into coercion rather than open governance. Shortly after, he filed a lawsuit in a California federal court against the Trump Family-linked crypto project to protect his rights as a major holder of WLFI tokens. The counter lawsuit from WLFI reads that Sun has “launched a coordinated media smear campaign against World Liberty Financial and refused to stop even when confronted with the truth.” The X post went further, alleging that The New York Times and other major outlets, which previously explained how the SEC had accused Sun of fraud, have now joined his ‘smear’ campaign against the Trump and Witkoff families. The Tron founder responded almost immediately, calling the counter lawsuit ‘nothing more than a meritless PR stunt.’ The alleged defamation lawsuit that World Liberty announced on X today is nothing more than a meritless PR stunt. I stand by my actions and look forward to defeating the case in court. — H.E. Justin Sun (@justinsuntron) May 4, 2026 The post WLFI Lawsuit Sparks Response: Justin Sun Calls It ‘Meritless’ appeared first on CryptoPotato .