A Florida lawsuit against Tron founder Justin Sun marks the latest escalation in a dispute with the World Liberty Financial project. WLFI alleges Sun conducted a “coordinated media smear campaign,” while Sun calls the suit a “meritless PR stunt.” The conflict stems from governance changes to WLFI tokens that Sun criticized as an “absurd governance scam,” leading to dueling legal actions.
The relationship between World Liberty Financial and Justin Sun has further deteriorated with the filing of a new lawsuit. The project filed a defamation lawsuit in Florida, accusing Sun of spreading false claims to his followers and requesting damages alongside a retraction.
Tension began when WLFI released a proposal to convert over 62 billion tokens from an indefinite lock to a fixed vesting schedule. Sun called the decision “one of the most absurd governance scams” he had ever seen, arguing it penalized dissent. He subsequently filed a lawsuit in California federal court to protect his rights as a major token holder.
The counter lawsuit from WLFI states that Sun has “launched a coordinated media smear campaign against World Liberty Financial and refused to stop even when confronted with the truth.” A post on X further alleged that media outlets which had previously covered SEC accusations against Sun had now joined a ‘smear’ campaign against the Trump and Witkoff families linked to the project.
Sun responded swiftly on social media, dismissing the legal action. “The alleged defamation lawsuit that World Liberty announced on X today is nothing more than a meritless PR stunt,” he stated. “I stand by my actions and look forward to defeating the case in court.”
