World Liberty Calls Sun Suit “Desperate,” Alleges Misconduct Without Details

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World Liberty Financial (WLFI) has dismissed Justin Sun’s federal lawsuit as ‘desperate’ and accused the Tron founder of unspecified misconduct, without explaining the claim. Sun filed suit Monday alleging World Liberty illegally froze roughly four billion WLFI tokens he values at about $1 billion.

World Liberty Responds on X, Not in Court

Co-founder Zach Witkoff accused Sun of misconduct in a post on X on Tuesday, calling the lawsuit a deflection. Eric Trump, a son of the president and also a World Liberty co-founder, posted on X on Wednesday and wrote:

“The only thing more ridiculous than this lawsuit is spending $6 million on a banana duct-taped to a wall,” a reference to Sun’s November 2024 purchase of Maurizio Cattelan’s artwork Comedian.

Neither Witkoff nor Trump specified what Sun allegedly did. A spokesperson for World Liberty declined to comment and referred inquiries to the co-founders’ X posts. As of publication, the company had not filed a formal response in court.

The gap between the public tone and the lack of detail is the most notable feature of World Liberty’s response so far. The company is treating the suit as frivolous while also accusing Sun of conduct serious enough to justify freezing roughly $1 billion in tokens, without putting the substance of those accusations on the record.

Sun’s Filing Lists the Accusations World Liberty Made Privately

Sun’s complaint, filed in the Northern District of California, provides more detail about what World Liberty has told him privately than World Liberty has shared publicly. According to the filing, the company leveled a shifting set of accusations against Sun in conversations and correspondence.

World Liberty allegedly blamed Sun for the roughly 40% price crash WLFI experienced on September 1, 2025, the first day the token became tradable. The company also claimed Sun drove the price down by short-selling perpetual futures on a centralized exchange, according to the complaint. Sun said that accusation is false and noted his transfers occurred hours after the steepest drop.

The filing also said World Liberty objected to Sun’s $100 million purchase of TRUMP tokens from a separate Trump-backed project. Sun said that purchase had the blessing of a Trump family member who is a partner in both ventures.

KYC Dispute Escalates Into Threats of Criminal Referral

The complaint describes an escalating series of additional allegations from World Liberty. The company accused Sun of acting as a straw purchaser for other investors in violation of his token purchase agreement, executing prohibited transfers to the exchanges HTX and Binance, and submitting inadequate know-your-customer documentation, according to the filing.

Sun’s complaint said World Liberty co-founder Chase Herro “repeatedly threatened to report Mr. Sun to U.S. criminal authorities over these unspecified KYC issues,” and that Herro and World Liberty “refused to explain in anything other than the broadest terms despite repeated requests from Plaintiffs for additional information.”

Sun denies all of the accusations. World Liberty has not publicly addressed any of them by name.

World Liberty Has Not Filed a Formal Court Response

The company’s position remains informal. Its public statements so far amount to X posts calling the lawsuit meritless and accusing Sun of misconduct without elaboration. It has not filed an answer or motion in the Northern District of California case.

Until World Liberty puts its accusations into a court filing, the only detailed account of the dispute comes from Sun’s side. The company’s formal response, when it arrives, will show whether the misconduct accusations are backed by specific factual claims and evidence or remain as vague as the X posts.