World Liberty Financial has initiated a defamation lawsuit against Justin Sun, the founder of Tron, in a Florida court, intensifying a legal dispute between the company and its significant investor. Filed on May 4, 2026, in the Eleventh Judicial Circuit Court for Miami-Dade County, the complaint alleges that Sun made false public statements that harmed the reputation of World Liberty and breached the terms of the WLFI token sale.
World Liberty claims that Sun engaged in prohibited actions, including short-selling the WLFI token and executing straw sales. The company is seeking a court-mandated retraction of Sun's statements and financial compensation. In response, Sun dismissed the allegations as a “meritless PR stunt” via a post on X, expressing confidence in prevailing in court.
This lawsuit follows Sun's recent legal action against World Liberty regarding the freezing of his WLFI tokens, which has sparked scrutiny over the governance and control of the project's tokens. The controversy has been fueled by a proposed two-year extension of lock-up periods for early investors, which Sun has criticized sharply.