World Liberty Financial (WLFI) has sued TRON founder Justin Sun for defamation in Florida, accusing him of spreading false claims to millions of followers and requesting damages along with a retraction.

Today, we are filing a lawsuit against Justin Sun for defamation. Sun has launched a coordinated media smear campaign against World Liberty Financial and refused to stop even when confronted with the truth.

Here's the story.🧵

— WLFI (@worldlibertyfi) May 4, 2026

In a statement issued on May 4, the Trump-backed DeFi project alleges Sun conducted unauthorized transfers, straw purchases, and short sales of $WLFI tokens, despite knowing about its contractual rights to freeze assets.

According to the complaint, Sun was aware that his statements were false or acted with reckless disregard for the truth, aiming to damage World Liberty’s reputation while advancing his own financial interests. The filing also highlights that Sun had previously endorsed the project before publicly criticizing it following a dispute.

The lawsuit, filed in Miami-Dade County, includes claims of defamation and defamation by implication and seeks compensatory and other damages, as well as a formal retraction.

In August, Sun initiated a lawsuit against World Liberty Financial in California federal court. The crypto entrepreneur claimed in a statement that the Trump-linked project unfairly froze his WLFI holdings and removed his governance rights.

The dispute originated late last year, when Sun’s wallet was blacklisted and about 540 million tokens were frozen after $9 million in transfers to exchanges. World Liberty flagged the activity as suspicious, while Sun described it as routine testing. The disagreement lingered as the project faced renewed scrutiny over its governance.

Sun has argued that a hidden blacklist feature allows the project to freeze assets without notice, contradicting its stated principles.

WLFI rose to a high of $0.061 this morning as the defamation lawsuit surfaced. The uptick follows a sharp decline last week, when the token hit an all-time low amid backlash over a governance vote and a Bloomberg report of an undisclosed 5.9 billion token sale to private investors.