World Liberty Financial, the crypto venture founded by Eric Trump and Donald Trump Jr., filed a defamation suit in Florida against billionaire investor Justin Sun. The complaint alleges Sun launched a coordinated smear campaign on X that damaged the firm’s reputation and cost it specific business opportunities. Sun, who turned from a major backer to a vocal critic, previously sued World Liberty for fraud.

World Liberty raised hundreds of millions of dollars through token sales, issuing the WLFI token that peaked before tumbling 80 % in value. Sun claims the firm blocked his ability to sell tokens and extorted additional funds, alleging it restricted his $45 million investment made after Trump’s 2024 reelection. The token’s collapse has eroded investor confidence in Trump‑linked crypto projects.

The lawsuit accuses Sun of hiring influencers and fake accounts to amplify false claims, describing the effort as a “scorched‑earth pressure campaign.” President Donald Trump reported $57.3 million in personal income from World Liberty in 2024, underscoring the financial stakes. The legal battle adds another layer of risk for investors watching politically tied crypto ventures.

Both parties face heightened scrutiny as regulators monitor the fallout, and the dispute could influence future fundraising for niche crypto projects.