Justin Sun Faces Misconduct Allegations from World Liberty Amid Defamation Claims

A drastic shift in stance has occurred for Eric Trump, who previously expressed admiration for Justin Sun on social media. This week, Trump likened Sun's lawsuit to a famous artwork featuring a $6 million banana duct-taped to a wall. The lawsuit, filed by Sun in the Northern District of California, accuses World Liberty Financial of wrongfully freezing approximately four billion $WLFI tokens valued at around $1 billion. In an informal response, World Liberty dismissed the suit as a 'desperate' attempt to divert attention and pledged to continue protecting its users. Co-founder Zach Witkoff accused Sun of 'misconduct', although neither Witkoff nor the company provided specific details about the alleged misconduct. A spokesperson for the firm declined to comment further, instead referring to posts made by Witkoff and fellow co-founder Eric Trump on social media. The complaint alleges that World Liberty made various accusations against Sun in private conversations, which he claims are unfounded and lack evidence. According to the filing, World Liberty attributed the 40% price crash of $WLFI on September 1, 2025, to Sun, and also accused him of short-selling perpetual futures, which Sun denies. Additionally, World Liberty objected to Sun's $100 million purchase of $TRUMP tokens, but Sun claims this was approved by a Trump family member involved in both projects. The company also alleged that Sun acted as a straw purchaser, made prohibited transfers, and submitted inadequate know-your-customer documentation, as stated in the filing. World Liberty has yet to formally respond to Sun's lawsuit.