Trump-Backed Crypto Venture Sues Billionaire Investor Over 'Smear Campaign'

The ongoing dispute between World Liberty Financial and billionaire investor Justin Sun has taken a new turn with the crypto venture filing a defamation lawsuit against him.

According to the lawsuit, filed in Florida state court, Sun launched a 'public smear campaign' against World Liberty, which is co-founded by President Donald Trump and his sons. The company alleges that Sun improperly transferred some of his WLFI tokens to crypto exchange Binance and engaged in short-selling, betting against the token's market value.

The lawsuit claims that this was part of a coordinated effort to push the token's market price down as public trading began in September. In response, World Liberty is seeking damages for the alleged defamation campaign.