Sun Ge goes head-to-head with the Trump family! Justin Sun, targeted by a WLFI countersuit for defamation, directly slams it as “PR stunt theater”

World Liberty Financial (WLFI), a crypto project under the Trump family, filed a defamation lawsuit against Tron founder Justin Sun (Justin Sun) on Tuesday, alleging that he launched a campaign of public opinion pressure. Sun, in turn, fired back that this was “baseless PR stunts,” and said the former largest backer has now turned enemies and taken the matter to court.

(WLFI token locked up until Trump leaves office? Justin Sun allegedly gets the short end of the stick, slams “world tyranny”)

From WLFI’s biggest backer to a court opponent

Tensions between Justin Sun and the Trump family have rapidly escalated in recent weeks. On Tuesday, the dispute officially moved from social media sparring to the courtroom. In a post today, WLFI said it has filed a defamation counterclaim in a Florida court, accusing the crypto tycoon—who had been an early supporter of the project—of launching an “opinion-pressure campaign” to force WLFI to release tens of millions of dollars in assets that were frozen. Justin Sun responded, calling the counterclaim a “baseless PR performance,” and stressed that he will prevail in court.

Sun’s relationship with WLFI has taken a sharp turn. He spent about $75 million to buy WLFI tokens, and also invested $100 million to purchase Trump’s official meme coin ($TRUMP), becoming one of the few Asian faces in Trump’s crypto ecosystem. Now, the crypto billionaire with a net worth of more than $11 billion will face his former cooperation partner in court.

Token freezes turned into the spark for the conflict

The incident dates back to September 2025, when WLFI tokens worth about $240 million at the time were frozen under a deal over alleged selling. He publicly attacked WLFI, calling it “World Tyranny,” and accused WLFI’s team of “planting backdoors in smart contracts,” freezing investors’ funds arbitrarily without due process.

On the other hand, reports revealed that WLFI deposited 5 billion of its own tokens into Dolomite, a DeFi lending platform co-founded by WLFI advisers, to borrow around $75 million in stablecoins—prompting market questions about WLFI’s governance transparency and allegations of de facto withdrawals.

Both sides tell different stories, and the legal battle centers on freezing authority

In late April 2026, Justin Sun first sued WLFI in a federal court in California. He argued that WLFI used fraudulent means to block his right to sell tokens lawfully, and accused the agreement of activating a blacklist mechanism that had not been disclosed in advance, violating the fundamental principle that cryptocurrencies should be immutable.

In its counterclaim, WLFI also hit back sharply, saying that the freeze function aligns with the content of the 2025 Clarity Act and that the relevant provisions were clearly laid out in the documents, token unlock agreement, and on-chain code. WLFI also accused Sun of violating multiple contractual obligations, including buying tokens on behalf of other investors under headcount names, transferring the tokens to exchanges in violation of rules, and conducting operations shorting WLFI tokens. It further accused him of hiring influencers and bot accounts to spread negative public sentiment, causing tangible harm to the company’s reputation and business.

WLFI emphasized that Sun’s public offensive was not aimed at protecting his own and the community’s interests, but rather retaliation triggered after Sun refused to pay the “hush money” of several hundred million dollars he demanded.

When crypto billionaires take on a world power

For the entire crypto industry, the political sensitivity of this lawsuit cannot be ignored. Behind WLFI stands the Trump family’s political brand, while Justin Sun is one of the most globally recognized figures in crypto. Their public clash is bound to draw market attention. Both lawsuits are currently ongoing, and Sun has confidently said on the X platform: “I have nothing to hide about my actions, and I look forward to winning in court.” It is clear that this legal battle still has a long way to go.

This article, “Big Brother Sun goes head-to-head with the Trump family! Justin Sun faces WLFI’s defamation counterclaim, directly slams ‘PR stunts’,” was first published on Chain News ABMedia.