World Liberty Fi has filed a lawsuit against Justin Sun, accusing him of defamation and coordinated market manipulation targeting its WLFI token. According to the complaint, Sun allegedly engaged in trading activity that included suspected short positions and transfers through Binance and third-party wallets, which led to his assets being frozen amid compliance concerns. The firm further claims that after the freeze, Sun initiated a public campaign to discredit the project, made threats to depress WLFI’s price, and demanded large payments in exchange for silence. World Liberty is now seeking damages and a court order to remove the alleged statements.