World Liberty Financial Countersues Justin Sun for Defamation After Asset Freeze Dispute

World Liberty Financial, a cryptocurrency firm associated with President Donald Trump and his family, filed a countersuit against billionaire investor Justin Sun on Monday in Florida state court, accusing him of defamation through a public smear campaign.

The action followed Sun's own lawsuit against the firm in late April, where he alleged fraudulent practices. Multiple sources confirmed the countersuit targeted Sun's social media posts and statements that World Liberty Financial described as part of a coordinated effort to pressure the release of his frozen assets.

Sun invested $75 million in a cryptocurrency issued by World Liberty Financial, part of nearly $200 million he funneled into Trump family digital assets projects.

In September, World Liberty Financial froze Sun's tokens, preventing him from selling holdings now valued at around $240 million at current market prices. The firm claimed in its lawsuit that Sun violated contractual obligations by buying tokens on behalf of other investors and engaging in short selling.

After the freeze, Sun posted repeatedly on X, statements that World Liberty Financial alleged were defamatory.

"Every action taken by the WLFI team to secretly implant backdoor controls over user assets, to freeze investor funds without disclosure or due process, and to treat the crypto community as a personal ATM, someone must be held personally accountable for these actions," Sun wrote on X.

" World Liberty Financial launched in October 2024 and has generated more than $1 billion in on-paper wealth by some estimates. , and Barron Trump were listed as cofounders on the project's website, alongside Steve Witkoff and his son Zach.

The firm aims to provide decentralized finance applications, including lending and borrowing on blockchain technology. The Securities and Exchange Commission sued Sun in 2023 for allegedly violating securities laws. The SEC settled that lawsuit against Sun in March.

Critics have pointed to potential conflicts of interest in the Trump family's involvement with World Liberty Financial, though spokespeople for the firm and the White House have denied such issues. Karoline Leavitt, White House press secretary, stated in a prior comment to Fortune that neither the President nor his family have engaged in conflicts of interest, adding that the administration is working to make the United States the crypto capital of the world.