Trump family’s crypto firm sues investor Justin Sun, escalating feud – ABC News

World Liberty Financial, the Trump family’s cryptocurrency venture, filed a defamation lawsuit in Florida state court on Monday against Chinese crypto mogul Justin Sun, escalating their legal conflict. The suit accuses Sun of orchestrating a “scorched-earth pressure campaign” against the firm, including hiring influencers and deploying fake social media bot accounts to spread what World Liberty Financial characterizes as lies about the company.

Sun initiated the conflict by suing World Liberty Financial last month, alleging the firm improperly froze his investment in its digital tokens. World Liberty Financial denies those claims and contends in its lawsuit that it froze Sun’s assets to protect its community after discovering alleged misconduct by Sun, including suspected short selling of the WLFI token and straw purchases of WLFI tokens on behalf of undisclosed third parties.

The litigation represents the breakdown of a previously profitable relationship. Sun had invested over 45 million dollars into World Liberty Financial and millions more into President Trump’s meme coin called TRUMP. Sun dismissed the lawsuit as “nothing more than a meritless PR stunt” on social media and stated he will defeat the case in court.

Donald Trump Jr., a World Liberty Financial co-founder, amplified the firm’s allegations by reposting the lawsuit claims on X to his followers, urging them to “Read this entire thread for the truth!!!!” Eric Trump serves as a newly appointed ALT5 Board Director, further entangling Trump family financial interests with the cryptocurrency venture.

Earlier in 2026, Sun resolved a civil fraud case brought by the Securities and Exchange Commission during the Biden administration by paying 10 million dollars, a settlement that critics characterized as favorable to the Chinese investor. The ongoing legal battle between World Liberty Financial and Sun signals deepening fractures within Trump family cryptocurrency operations and their reliance on foreign capital from individuals with documented regulatory violations.

(Source: https://abcnews.com/US/trump-familys-crypto-firm-sues-investor-justin-sun/story?id=132632914)