Trump family’s crypto project sues billionaire backer Justin Sun
Trump family’s crypto venture files defamation suit against its own billionaire backer.
World Liberty Financial, the crypto venture co-founded by U.S. President Donald Trump and his sons, announced on Monday it had filed a defamation lawsuit against Hong Kong-based crypto entrepreneur Justin Sun. The project posted its complaint on X, accusing Sun of orchestrating a 'public smear campaign' with false claims. According to the lawsuit, Sun allegedly violated terms by transferring his tokens to crypto exchange Binance. The suit is the latest twist in a heated feud between the Trump family’s lucrative crypto business and one of its most prominent early backers.
Sun responded on X, calling the lawsuit a 'meritless PR stunt' and vowing to defeat it in court. The dispute began in April when Sun sued World Liberty, claiming the project had secretly installed tools to freeze his tokens after they became tradeable in September 2025. World Liberty countered that its ability to freeze tokens was disclosed in the Terms of Sale. Donald Trump Jr. reposted World Liberty’s thread, urging followers to 'read this entire thread for the truth.' CEO Zach Witkoff expressed confidence that 'the truth coming out in court.'
- World Liberty Financial filed a defamation lawsuit against Justin Sun, accusing him of launching a 'public smear campaign' and transferring tokens to Binance against terms.
- Sun previously sued World Liberty in April for illegally freezing his tokens after they became tradeable in September 2025.
- The lawsuit was publicized by Donald Trump Jr. and CEO Zach Witkoff, while Sun called it a 'meritless PR stunt.'
Why It Matters
Highlights legal and governance risks in politically-connected crypto projects with token-freezing mechanisms.