WLFI sues Justin Sun for defamation; token falls 35% over past month

WLFI sued Justin Sun for defamation. Sun countersued days earlier.

The Trump‑linked crypto project says Sun ran a smear campaign to sink its token.

- WLFI filed the claim on May 4. The company alleges Sun began making false statements on April 12 to manipulate sentiment, not raise concerns. Guardian, Forbes

- Sun was embedded in WLFI. An entity linked to him bought $30 million of WLFI tokens in November 2024. He also joined as an advisor. Forbes

- The relationship broke after Sun allegedly tried moving tokens to Binance, violating agreed terms. WLFI says it froze the assets under contract for protection. WLFI thread

- Sun struck first in court. On April 22, he sued WLFI in California, claiming a wrongful lockup of tokens once worth $1 billion and loss of voting rights. Sun tweet, Reuters

- WLFI alleges Sun then spread misleading claims about governance and hinted at a secret backdoor. It also says he paid influencers and used bots to amplify posts. Reuters, WLFI thread

- WLFI cites Sun’s intent to drive the token price “to shit.” WLFI thread

- Sun says he stands by his actions and expects to win. Sun tweet

The token moved on headlines. It jumped 8% after the suit. But it fell 15% over the past week and 35% in a month. CoinGecko WLFI

WLFI seeks damages tied to the token’s decline. The amount isn’t disclosed. Reuters