Trump Family’s World Liberty Financial Sues Crypto Billionaire Justin Sun for Defamation
By Aimee Picchi, Associate Managing Editor, CBS MoneyWatch
Updated May 4, 2026 / 1:57 PM EDT
Miami, FL – World Liberty Financial, a cryptocurrency venture co-founded by former President Donald Trump’s sons, Donald Trump Jr. and Eric Trump, has filed a defamation lawsuit against noted crypto billionaire Justin Sun. The suit accuses Sun of orchestrating a “public smear campaign” aimed at damaging the company’s reputation.
The lawsuit, lodged on Monday in the Eleventh Judicial Circuit Court for Miami-Dade County, Florida, seeks undisclosed financial damages alongside a public retraction of statements made by Sun on social media platforms.
Background: Rising Tensions Between World Liberty Financial and Justin Sun
World Liberty Financial burst onto the cryptocurrency scene in 2024, launched by Donald Trump Jr., Eric Trump, and entrepreneurs Zachary Folkman and Chase Herro. The company’s tokens, trading under the ticker $WLFI, have seen a significant drop in value — approximately 81% over the past year — currently trading near six cents, as reported by CoinMarketCap.
Conflicts between the two parties began escalating last month when Sun, a prominent figure in the cryptocurrency space, filed his own lawsuit against World Liberty Financial, accusing the company of fraud. Sun’s claim centered on allegations that he was unlawfully barred from selling digital tokens worth as much as $1 billion.
Allegations in the Defamation Suit
In the newly filed complaint, World Liberty Financial accuses Justin Sun of engaging in manipulative trading practices against the $WLFI tokens. The lawsuit alleges Sun placed covert “straw purchases” using third parties to buy tokens anonymously. The company also reveals it froze tokens owned by one of Sun’s affiliated companies to protect the broader investor community.
The suit describes Sun’s response as a “scorched earth pressure campaign,” asserting that he employed aggressive tactics, including threats of litigation intended to “light World Liberty on fire.” After the company refused to yield to these demands, Sun purportedly launched a public defamation effort aimed at damaging World Liberty’s credibility.
Among the false claims cited by World Liberty in the lawsuit are Sun’s allegations that the company treats the crypto community “as a personal ATM” and operates with flawed governance practices. The lawsuit further claims Sun utilized online influencers and fake social media “bot” accounts to amplify his defamatory posts, which reached millions of views and garnered extensive media attention.
Given Sun’s stature in the crypto world, World Liberty Financial maintains that these remarks have been “profoundly harmful” to their business.
Justin Sun’s Response
Sun’s legal team did not immediately respond to CBS News’ request for comment. However, Sun took to X (formerly Twitter) to dismiss World Liberty Financial’s lawsuit as “a meritless PR stunt,” asserting his confidence in prevailing in court.
About Justin Sun and World Liberty Financial
Justin Sun is a well-known entrepreneur in the crypto industry, having founded the decentralized blockchain platform Tron in 2017. According to the Bloomberg Billionaires Index, Sun’s net worth is close to $12 billion. He has made headlines beyond the crypto world, including a reported $6.2 million purchase of a conceptual artwork consisting of a banana duct-taped to a wall in 2024. —
The Broader Crypto Context
The feud between World Liberty Financial and Justin Sun underscores growing tensions within the rapidly evolving cryptocurrency environment, where millions of dollars are at stake and reputations can be swiftly affected by public statements across social media.
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