Trump Family Project vs. Justin Sun: Defamation Lawsuit Battle...Why?

▲ Justin Sun, Donald Trump, World Liberty Financial (WLFI)/AI-generated image

World Liberty Financial (WLFI), a virtual asset project led by the family of U.S. President Donald Trump, has filed a defamation lawsuit against Justin Sun, intensifying industry conflict.

CCN reported on May 4 (local time) that World Liberty Financial filed a lawsuit against Justin Sun in the Miami-Dade County Circuit Court in Florida. The project claimed that Sun caused investor confusion and damaged corporate trust by spreading false information and defamation through his X (formerly Twitter) account, demanding a public apology and compensation for damages.

In the complaint, World Liberty Financial emphasized that Sun waged a deliberate defamation campaign to obstruct token sales. Specifically, it pointed out that he spread distorted information about the project's governance structure and fund operation methods to approximately 4 million followers. The project explained that this lawsuit is a measure to prove transparency and prevent damage from malicious rumors.

In response, Justin Sun previously claimed that the project secretly introduced features to arbitrarily freeze investor assets and restrict sales. He also strongly criticized its centralized structure and inadequate investor protection. World Liberty Financial refuted these claims as untrue, stating that all operations were carried out according to pre-announced regulations. It also added that Sun distorted facts for personal gain.

This dispute is creating a significant ripple effect as it involves a conflict between a project participated in by the family of a sitting U.S. president and a prominent figure in the virtual asset industry. With Eric Trump and Donald Trump Jr. leading the project, the conflict between the two parties is acting as a factor stimulating market volatility. The industry is noting the possibility that the outcome of this lawsuit could become an important benchmark for future virtual asset project disclosure standards and defamation judgments.

World Liberty Financial has stated its intention to restore trust and normalize business through the lawsuit, while Justin Sun's side is expected to focus on legal action without issuing an official statement.

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