World Liberty Financial, a cryptocurrency venture co-founded by Donald Trump Jr., Eric Trump, and others, has filed a defamation lawsuit against crypto billionaire Justin Sun. The company alleges that Sun engaged in a 'public smear campaign' after World Liberty froze his assets due to suspected misconduct.
Key Takeaways
World Liberty Financial, co-founded by Donald Trump Jr., Eric Trump, and others, has sued crypto billionaire Justin Sun for defamation after he allegedly engaged in a smear campaign against the company. The lawsuit claims Sun made false statements on social media following a dispute over frozen assets.
- World Liberty Financial accuses Sun of defaming the firm publicly
- Dispute stems from allegations of short selling and straw purchases by Sun
- Sun denies wrongdoing, calling the lawsuit 'meritless'
- SEC previously accused Sun of market manipulation in 2023
According to the lawsuit filed in Miami-Dade County, Florida, Sun made false claims on social media about the company's governance practices and treatment of investors. World Liberty Financial accuses Sun of using online influencers and fake 'bot' accounts to amplify these allegations, which were viewed millions of times and generated widespread media coverage.
The dispute stems from a previous lawsuit filed by Sun in April, where he accused World Liberty Financial of fraud for blocking him from selling digital tokens worth up to $1 billion. The company claims Sun bet against its crypto tokens through short selling and straw purchases, prompting them to freeze his assets as a protective measure.
Justin Sun has denied the allegations, calling the lawsuit 'a meritless PR stunt.' He stated on social media that he stands by his actions and looks forward to defeating the case in court. The U.S. Securities and Exchange Commission (SEC) previously accused Sun of market manipulation, reaching a $10 million settlement earlier this year without admitting wrongdoing.
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