World Liberty Financial: Trump's family crypto firm sues billionaire Justin Sun in recent dispute

World Liberty Financial, the crypto venture by Trump's family, said on Monday it had filed a ‌defamation lawsuit against Hong Kong-based crypto entrepreneur Justin Sun in the latest escalation of a dispute between the project and one of its most prominent backers.

The latest move comes as previously Crypto billionaire Justin Sun and Co. have sued 'World Liberty Financial,' accusing it of extortion and an “illegal scheme” to seize his tokens

Sun alleges the firm, co-founded by US President Donald Trump and his son Eric Trump, has "frozen" all of his tokens and stripped him of his right to vote on governance issues.

On the contrary, World Liberty recently posted a copy of its lawsuit on X in which it accused Sun of launching a "public smear campaign," including claims that it said were false.

The crypto project—one of several lucrative crypto businesses co-founded or controlled by the Trump family—said that Sun had done things he wasn't allowed to do with his tokens, including transferring them to crypto exchange Binance.

In April, Sun said World Liberty secretly installed tools to prevent the sale of his ‌tokens after they became tradeable in September 2025.

In its lawsuit, World Liberty said its ability to freeze tokens had been disclosed in the Terms of Sale.

Sun previously told Reuters, "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." He posted the same message on X.

The president's son, 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, said on X, "I look forward to the truth coming out in court."