World Liberty Financial countersued Justin Sun, claiming the TRON founder defamed WLFI▲$0.0625 after allegedly moving $300 million to Binance.
World Liberty Financial, a Trump-linked crypto venture, has countersued Yuchen “Justin” Sun in Florida state court on Monday, claiming the TRON founder defamed the company after it froze WLFI tokens tied to him.
In a Monday press release, the crypto venture said Sun wasn’t only complaining about frozen tokens, but had allegedly engaged in “prohibited transfers, straw purchases, and short sales of WLFI” before the public fight blew up.
Sun has already sued World Liberty Financial in California federal court, accusing the company of wrongly freezing tokens he says he owns. The Trump-backed crypto firm is now answering with its own case, saying Sun knew the freeze rules existed.
Read also: Trump Family Crypto Failures: Why WLFI, ABTC, and TRUMP Token Collapsed
$300 Million Before the WLFI Launch
World Liberty Financial says Sun’s entity Blue Anthem bought 2 billion non-transferable WLFI tokens for $30 million in November 2024. The company says Blue Anthem was also granted another 1 billion WLFI tokens that same day for agreeing to serve on the project’s advisory board, then bought about 1 billion more tokens in January of this year.
- That would put Sun’s crypto holdings at about 4 billion WLFI tokens, according to the filing. The complaint says those tokens were locked from issuance, and Blue Anthem had “no right or ability to transfer or sell them.”
- The filing alleges Sun or his affiliates engaged in short-selling or similar WLFI trades despite his obligations and advisory role.
Then, World Liberty Financial says that on Aug. 31, 2025, an HTX▲$0.00000173-linked hot wallet executed three transfers of about $100 million USDT▼$0.9991 each to a Binance deposit address.
The complaint says the money came from the Huobi Recovery Wallet, which World Liberty Financial describes as a wallet “Sun has publicly acknowledged as his own.” It also says the same HTX wallet funded Sun’s TRON DAO wallet, which participated in the WLFI token sale. The filing reads:
“Simply put, Sun’s exchange wallet moved $300 million to Binance the day before $WLFI opened for public trading. The next morning, $WLFI’s price crashed, while open shorts jumped—meaning traders were stacking up new short positions in massive volumes.”
As World Liberty Financial says, the activity looked like a “large, deliberate, short-selling campaign designed to suppress $WLFI’s price at the moment of its public launch.”
‘Light World Liberty on Fire’
World Liberty Financial says it froze tokens tied to Sun after discovering alleged violations. The company argues the freeze power wasn’t hidden, adding Blue Anthem agreed to a Token Unlock Agreement.
The complaint says Sun then began threatening litigation. According to the filing, Sun “weaponized” those threats and said the litigation would “light World Liberty on fire,” cause the WLFI token price to “go to shit,” and be “bad for the whole industry.”
- The April 20 demand letter attached to the complaint claims Sun tried to intimidate the company by “siccing Chinese law enforcement on World Liberty employees” through allegedly false reports that the project stole from him, leading to “extensive interrogation” of a World Liberty Financial employee in Beijing, China.
The company claims it lost business opportunities because of the posts, including a potential deal with Native Market that didn’t move forward “due, in substantial part,” to Sun’s statements. Therefore, the company now wants damages, legal fees, interest and a court order forcing Sun to take back the statements. It also says it may seek extra punitive damages.
Read more: Justin Sun Sues Trump-backed World Liberty Financial Over Frozen WLFI Tokens
