The legal battle between Justin Sun and World Liberty Financial is drawing attention in the crypto world. Sun claims the Trump-linked DeFi company froze almost $1 billion in WLFI tokens without reason. ]
In his California lawsuit, he says the company has shifted its accusations several times but has not offered solid proof.
World Liberty strongly denies these claims. Co-founder Zach Witkoff called the lawsuit a desperate attempt and accused Sun of wrongdoing but did not share any specifics. Eric Trump has said publicly that the company plans to stand by its decisions.
According to Sun’s lawsuit, the company blamed him for a steep drop in WLFI’s price when trading started in September 2025. He is also accused of manipulating the market through short selling, which he denies.
Sun argues that his trades did not match the timing of the price fall, which he says weakens the accusation.
The lawsuit also mentions that World Liberty questioned Sun’s $100 million purchase of TRUMP tokens, but Sun says he had approval from within the company.
There are other claims about breaking token agreements and KYC rules, but Sun calls these unclear and unproven. The result of this case could affect how big DeFi disputes with political connections are handled in the future.
Source: X.com
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