On May 4, 2026, World Liberty Financial filed a defamation lawsuit against Justin Sun, accusing the TRON founder of launching a public campaign against the company after it restricted access to his WLFI tokens. Sun had filed his own lawsuit on April 21, claiming the company unlawfully froze his holdings and blocked his voting rights.
The dispute stemmed from WLFI token transfers to exchanges in September 2025. World Liberty Financial alleged Sun engaged in misconduct including short-selling and price suppression, leading the company to blacklist wallets associated with Sun and freeze hundreds of millions of unlocked tokens and billions of locked tokens. Sun, who invested $30 million in November 2024 and increased his total investment to approximately $75 million, denied the allegations and characterized the freeze as unlawful asset seizure. WLFI traded near $0.06 in early May 2026, down roughly 70-80% from prior levels.
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