The dispute between World Liberty Financial and Justin Sun has intensified, marking another setback in what was once a cooperative relationship.
The decentralized finance project has now filed a defamation lawsuit in Florida in response to Sun’s recent legal actions. In its filing, WLFI accuses Sun of spreading misleading information to his large online audience and is seeking damages along with a formal retraction of his statements.
The conflict began weeks earlier when WLFI introduced a proposal to convert more than 62 billion tokens from an indefinite lock into a structured vesting schedule. Token holders who opposed the proposal faced the possibility of having their tokens locked indefinitely, although they would still retain voting rights in governance matters.
Sun strongly criticized the move, describing it as one of the most extreme examples of flawed governance he had encountered. He argued that the proposal punishes dissenting voices and replaces open participation with pressure and coercion. Soon after, he filed a lawsuit in a federal court in California against the Trump associated crypto venture, aiming to safeguard his rights as a significant token holder.
In its counterclaim, WLFI alleges that Sun orchestrated a coordinated campaign to damage the project’s reputation and continued despite being challenged on the accuracy of his claims. The project also suggested that media outlets such as The New York Times have contributed to amplifying what it describes as a smear effort, referencing earlier reports involving regulatory scrutiny of Sun.
Sun responded quickly to the new lawsuit, dismissing it as a baseless public relations tactic and maintaining that his actions throughout the dispute have been justified.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
