World Liberty sues Justin Sun for defamation over token freeze and alleged smear campaign

World Liberty Financial has filed a defamation lawsuit against crypto entrepreneur Justin Sun after freezing billions of his WLFI tokens, accusing him of a coordinated smear campaign on social media. The dispute centers on World Liberty's decision to freeze tokens linked to Sun's entity, citing contractual rights to protect system integrity, while Sun alleges undisclosed control and wrongful freezing. World Liberty claims Sun's public accusations of fraud and governance manipulation are false and damaging, escalating the conflict into formal litigation. This case highlights ongoing tensions in decentralized finance around governance transparency and control mechanisms.