World Liberty Hits Back at Tron Founder Justin Sun's Defamation Allegations

In a dramatic turn of events, Eric Trump has gone from praising Justin Sun on social media to comparing his lawsuit to a notorious $6 million duct-taped banana art piece. 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. World Liberty responded informally, calling the suit a 'desperate' diversion and vowing to continue protecting its users. Co-founder Zach Witkoff accused Sun of misconduct, although neither he nor the company provided specific details. A spokesperson for the firm declined to comment further, directing inquiries to Witkoff and fellow co-founder Eric Trump's social media posts. The lawsuit may shed more light on the allegations. According to Sun, World Liberty made various accusations against him in private, but failed to provide evidence to support these claims. The complaint alleges that World Liberty blamed Sun for the 40% price drop of $WLFI on its first day of trading, claiming he was responsible for short-selling perpetual futures on a centralized exchange. However, Sun denies these allegations, stating they are unfounded and difficult to prove. World Liberty also 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. Furthermore, the company allegedly accused Sun of violating his token purchase agreement by acting as a straw purchaser, making prohibited transfers to exchanges, and providing inadequate know-your-customer documentation. The filing states that World Liberty refused to provide further information on these allegations despite repeated requests. As of now, WLFI has not formally responded to Sun's lawsuit.