World Liberty Alleges Justin Sun's 'Misconduct' in Response to Defamation Claims by Tron Founder

A dramatic turn of events has unfolded as Eric Trump, co-founder of World Liberty, has gone from praising Justin Sun on social media to comparing a lawsuit filed by Sun to a notorious $6 million duct-taped banana. The lawsuit, filed in the Northern District of California, accuses World Liberty Financial of unlawfully 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 deflect attention and pledged to continue protecting its users, with co-founder Zach Witkoff accusing Sun of 'misconduct'. However, neither Witkoff nor the company has elaborated on the nature of Sun's alleged misconduct. A spokesperson for the firm declined to comment, instead referring to Witkoff and fellow co-founder Eric Trump's posts on social media. The complaint itself may provide more insight, as Sun alleged that World Liberty made a series of unsubstantiated accusations against him in private conversations and correspondence. According to the filing, World Liberty has blamed Sun for the roughly 40% price crash of $WLFI on September 1, 2025, and also accused him of short-selling perpetual futures on a centralized exchange, which Sun denies. The company has yet to file a formal response to Sun's suit.