World Liberty Financial sues Justin Sun for defamation amid token freeze dispute

World Liberty Financial (WLFI) has filed a defamation lawsuit against Tron founder Justin Sun following a dispute over frozen WLFI tokens linked to Sun's entities. Sun previously sued WLFI after the project froze his tokens and revoked his governance rights, claiming unfair treatment. WLFI alleges Sun launched a media campaign spreading false statements to damage the project's reputation and token value. The conflict involves competing lawsuits, governance accusations, and concerns over decentralized finance trust. WLFI maintains the token freeze was authorized under its terms to protect the ecosystem and denies Sun's claims of governance manipulation.