The Trump family's crypto project, World Liberty, filed a defamation lawsuit this week claiming that Tron founder Justin Sun shorted its WLFI token—and that his actions caused the token's price to crash. The suit is the latest escalation in a legal back-and-forth between the two parties; Sun had previously sued World Liberty, alleging rampant misconduct.
The defamation claim
World Liberty's complaint centers on the allegation that Sun, through his own trading or public statements, deliberately drove down the WLFI token's price. The firm argues that Sun's actions amount to defamation because they undermined confidence in the project and damaged its reputation. The suit doesn't specify damages but seeks a jury trial.
A lawsuit volley
This isn't the first time these two have squared off in court. Earlier this year, Sun filed his own lawsuit against World Liberty, accusing the Trump family's firm of widespread misconduct—though the specific allegations in that case haven't been detailed publicly. The dueling lawsuits suggest a deeply personal feud now playing out in public view.
Both cases are in early stages. World Liberty's defamation suit will need to survive a motion to dismiss, and Sun's earlier suit is likely headed for discovery. The timing isn't great for either party: WLFI's price is still under pressure, and Sun faces regulatory scrutiny on multiple fronts. A court date hasn't been set.
