The Trump family’s cryptocurrency company, World Liberty Financial, filed a lawsuit on Monday against Tron founder Sun Guangzhi, accusing the crypto entrepreneur of shorting their token last fall and defaming the company after its assets were frozen.
Just a few weeks ago, Sun Zhen, one of the largest holders of the company's WLFI token, filed a lawsuit against World Liberty.Allegingthat the company improperly froze his investment.
World Liberty filed a lawsuit in a Florida court on Monday, alleging that Sun Yuchen funded a "large-scale, intentional short-selling campaign" aimed at suppressing the price of the token $WLFI when it began public trading in September.
World Liberty claims that, to "prevent further harm to the company and its token holders," it froze a large number of Sun's tokens—stating that, according to Sun's token unlocking agreement, it has always held this right.
Shortly after, Sun Zhuochen publicly requested the World Free Bank to unfreeze his tokens. Controversy He did nothing wrong.
According to today’s lawsuit, Sun Yuchen then began privately threatening to sue the Trump family’s cryptocurrency company, allegedly claiming that his lawsuit would “ignite World Liberty” and cause the price of WLFI to “plummet.”
Last month, Sun Zhenyu filed a lawsuit against World Liberty, claiming he remains a staunch supporter of President Donald Trump, but that the president’s company violated his rights as an investor by improperly freezing his tokens.
Around that time, Sun also stated in a series of social media poststhe defendantthat the operators of World Liberty treated the cryptocurrency community as a personal ATM and labeled the company accordingly.Several leaders, including members of the Trump family, were accused of being “bad actors.”
In today's lawsuit, World Liberty Corp. argued that these statements constitute defamation and have caused the company "extremely severe harm." The company also accused Mr. Sun of hiring social media influencers and deploying social media "bot" accounts to amplify his falsehoods.
This morning, Sun posted on social media to dismiss the lawsuit as a "baseless public relations stunt."XHe said he looks forward to refuting these claims in court.
Justin Sun has been one of the biggest supporters of the Trump family’s sprawling cryptocurrency empire. In addition to spending tens of millions of dollars on WLFI tokens, he also purchased millions of dollars’ worth of the Trump-branded cryptocurrency built on the Solana platform.Meme coinsLast year, (Trump) claimed to be the largest holder of this asset.
Earlier this year, the SEC under Trump took action. SettlementIt brought a long-running fraud case against Sun Microsystems, a decisionthatallegedlyled to the subsequent resignation of the agency’s enforcement chief.
But Sun's relationship with the Trump family has become strained over the past few months. At the end of last month, Presidenthelda lavish party at Mar-a-Lago for Sun's "meme coin" holders, but he was notably absent.