Trump-linked WLFI sues Justin Sun over alleged short-selling smear
Fox News • • business
Key Points:
- World Liberty Financial, a crypto firm founded by the Trump and Witkoff families, has filed a lawsuit accusing investor Justin Sun of conducting a smear campaign to devalue their token, alleging he shorted the token and publicly defamed the company after his assets were frozen.
- Sun, founder of the TRON blockchain and a major investor in World Liberty Financial, initially praised the company but later criticized its leadership and business practices, accusing it of having a feature that allows unilateral freezing of users' digital assets.
- The lawsuit claims Sun used fake social media accounts to amplify his negative statements and threatened public criticism unless his frozen holdings were released, actions World Liberty Financial says violated their agreement.
- Prominent figures including Eric and Donald Trump Jr. have supported the company's accusations, labeling Sun's campaign as coordinated and harmful to token holders.
- Justin Sun has previously faced SEC accusations for selling unregistered securities and market manipulation, adding context to the ongoing dispute.
