World Liberty Financial (WLFI) has filed a defamation lawsuit against Justin Sun, accusing him of orchestrating a smear campaign to devalue its $WLFI token after the project froze tokens linked to a Sun-affiliated entity. The dispute follows Sun's own lawsuit alleging WLFI illegally froze his tokens using a hidden blacklist function in their smart contracts. WLFI insists the freeze was disclosed in token sale terms and claims Sun funded influencers and bots to spread false accusations of a scam and backdoor. This legal battle highlights tensions over token control features and involves significant political and financial stakes, with WLFI backed by the Trump family and Sun a major investor.
