World Liberty Financial, the crypto venture co-founded by U.S. President Donald Trump and his sons, announced on May 4 that it has initiated a defamation lawsuit against Hong Kong-based crypto entrepreneur Justin Sun.
The company posted a copy of its legal filing on X, asserting that Sun engaged in a "public smear campaign" that included assertions World Liberty says are false. In the complaint, World Liberty also alleges Sun engaged in actions with his tokens that exceeded the permissions granted to him, specifically citing transfers to the cryptocurrency exchange Binance.
These developments come after a related legal action in April, when Justin Sun filed his own suit against World Liberty Financial. In that complaint, Sun accused the company of illegally freezing tokens he had purchased. He further alleged that World Liberty secretly installed tools designed to prevent him from selling the tokens after they became tradeable in September 2025.
World Liberty's defamation filing responds directly to those claims. The company says its contractual right to freeze tokens was disclosed in the Terms of Sale.
Sun issued a public reply, saying the defamation lawsuit was "nothing more than a meritless PR stunt." He reiterated that stance on X, adding that he stands by his actions and intends to defeat the case in court.
"The alleged defamation lawsuit that World Liberty announced on X today is nothing more than a meritless PR stunt. I stand by my actions and look forward to defeating the case in court."
Members of the Trump family and World Liberty leadership have also posted reactions on X. Donald Trump Jr. reposted World Liberty's thread with the comment: "Read this entire thread for the truth!!!!" Zach Witkoff, World Liberty's chief executive and a co-founder, wrote on X: "I look forward to the truth coming out in court."
The dispute now features cross-complaints: World Liberty's defamation suit and Sun's earlier claim regarding token freezes and sale-prevention mechanisms. Each side has made its position public through posts on X and formal legal filings; both have signaled they expect resolution through the courts.
Legal posture and public messaging
World Liberty emphasizes contractual disclosure of token controls, while Sun contests the legality of any freeze and asserts public-facing claims to challenge World Liberty's conduct. The argument centers on whether mechanisms to restrict token sales were properly disclosed and whether Sun's public statements constitute defamatory conduct.