World Liberty Hits Back at Justin Sun, Alleging 'Misconduct' Amid Defamation Claims

A dramatic turn of events has unfolded as World Liberty Financial pushes back against Justin Sun's defamation claims. The company's co-founder, Eric Trump, has publicly denounced Sun's lawsuit, drawing a parallel between the suit and the infamous $6 million banana duct-taped to a wall. The controversy began when Sun filed a complaint in the Northern District of California, accusing World Liberty of unlawfully freezing approximately four billion $WLFI tokens, valued at around $1 billion. World Liberty has dismissed the allegations as a 'desperate' attempt to divert attention from Sun's own alleged wrongdoing, with co-founder Zach Witkoff accusing Sun of 'misconduct'. Although the specifics of Sun's alleged misconduct have not been disclosed, a spokesperson for the company has declined to comment further. The lawsuit itself may provide more insight into the matter, as Sun claims that World Liberty has made various accusations against him in private, without providing any evidence to support these claims. According to the filing, World Liberty has blamed Sun for the 40% price crash of $WLFI on September 1, 2025, and has also accused him of short-selling perpetual futures on a centralized exchange. However, Sun has denied these allegations, stating that they are false and lack substantiation. The dispute between World Liberty and Justin Sun continues to unfold, with the company yet to file a formal response to the lawsuit.