World Liberty Hits Back at Justin Sun Over 'Misconduct' Allegations Amid Defamation Claims

A dramatic shift has occurred in the relationship between Eric Trump and Justin Sun, with Trump now mocking a lawsuit filed by Sun, comparing it to a famously expensive banana artwork. The lawsuit, filed in the Northern District of California, accuses World Liberty Financial of wrongfully freezing approximately four billion $WLFI tokens, valued at around $1 billion. World Liberty's informal response labels the suit as a 'desperate' attempt to divert attention from Sun's alleged 'misconduct', with co-founder Zach Witkoff vowing to continue protecting the platform's users. Neither Witkoff nor the company has elaborated on the nature of Sun's alleged misconduct, with a spokesperson declining to comment further. The lawsuit itself may provide more insight, as Sun claims World Liberty made various accusations against him in private, none of which have been substantiated with evidence. According to the filing, World Liberty has blamed Sun for a 40% price crash of $WLFI on its first day of trading, and accused him of short-selling perpetual futures, a claim Sun denies. The company also raised objections to Sun's $100 million purchase of $TRUMP tokens and accused him of violating his token purchase agreement. World Liberty has yet to formally respond to the lawsuit.