Trump-linked crypto firm, Justin Sun in legal clash

World Liberty Financial, a cryptocurrency venture co-founded by Donald Trump and his sons, filed a defamation lawsuit against billionaire Justin Sun in Florida on May 4, 2026. The complaint accuses Sun of conducting a public smear campaign that allegedly damaged the company’s reputation and business prospects.

According to the filing, World Liberty claims Sun made false statements about the company on social media. The firm argues that these statements reached a broad audience in the crypto community and beyond, allegedly undermining confidence in its project and leadership.

World Liberty alleges that Sun falsely portrayed the company as treating the crypto community as a personal ATM and criticized its governance practices as improper. The firm contends that such comments mischaracterized its operations and motives, casting doubt on its integrity.

The lawsuit states that Sun’s remarks caused significant harm to World Liberty’s reputation and business opportunities. As part of the relief sought, the company is asking the court for unspecified monetary damages and a public retraction of Sun’s statements.

The defamation case marks an escalation of an already contentious dispute between the parties. In April 2026, Justin Sun filed his own lawsuit against World Liberty Financial, accusing the company of fraud related to its digital tokens.

Sun’s earlier complaint claims he was blocked from selling digital tokens associated with World Liberty that he valued at up to $1 billion. That legal action set the stage for a broader conflict over the conduct of both the token sale and the parties’ subsequent dealings.

In its May 4 filing, World Liberty goes beyond contesting Sun’s public comments and raises broader allegations about his behavior around the token market. The company accuses Sun of misconduct, including making straw purchases and engaging in short selling of its tokens.

World Liberty argues that these alleged trading practices, combined with the social media statements, formed part of a wider effort to undermine the company. The firm links the purported smear campaign and market activity to the damage it says it has suffered.

Justin Sun has rejected World Liberty’s defamation claims, describing the suit as a meritless public relations stunt. He has stated that he intends to defend his actions in court, signaling that he will contest the allegations laid out by the company.

With both a fraud claim and a defamation claim now pending, the dispute between World Liberty Financial and Justin Sun has expanded on both legal and public-relations fronts. The outcomes of these cases will hinge on how courts assess the competing narratives about token trading, governance, and public statements.