Ten months in the past, Eric Trump was posting on X about how a lot he beloved Justin Sun. This week, he is likening a lawsuit from Sun to the notorious $6 million duct-taped banana.
Sun filed a criticism Monday within the Northern District of California, accusing World Liberty Monetary of illegally freezing roughly 4 billion $WLFI tokens price round $1 billion. The Trump-family-backed DeFi enterprise’s casual Tuesday response dismissed the go well with as a “desperate” deflection and pledged to maintain defending its customers, with co-founder Zach Witkoff accusing Sun of “misconduct.”
Justin Sun’s latest lawsuit in opposition to @worldlibertyfi is a determined try to deflect consideration from Sun’s personal misconduct. His claims are fully meritless, and World Liberty seems ahead to getting the case thrown out promptly.
He engaged in misconduct that required World…
— Zach Witkoff (@ZachWitkoff) April 22, 2026
Neither he nor the corporate spelled out Sun’s alleged misconduct. A spokesperson for the agency declined to remark, as a substitute referring CoinDesk to Witkoff and fellow co-founder Eric Trump’s posts on X.
The criticism itself might fill within the blanks. Sun alleged that World Liberty leveled a shifting set of accusations in opposition to him in non-public conversations and correspondence, none of which, he argued, the corporate has backed up with proof.
Based on the submitting, World Liberty has at numerous factors blamed Sun for the roughly 40% worth crash $WLFI skilled on Sept. 1, 2025, the primary day the token turned tradable.
WLFI additionally claimed Sun drove down the value by short-selling perpetual futures on a centralized trade, in line with Sun’s criticism, an accusation Sun stated is fake, and that the criticism notes could be tough to pin on him, given his transfers occurred hours after the steepest drop.
World Liberty individually objected to Sun’s $100 million buy of $TRUMP tokens from a special Trump-backed venture, in line with the submitting, however Sun stated this purchase obtained the blessing of a Trump member of the family who’s a accomplice in each ventures.
The corporate allegedly additionally accused Sun of appearing as a straw purchaser for different buyers in violation of his token buy settlement, executing prohibited transfers to the exchanges HTX and Binance and submitting insufficient know-your-customer documentation, in line with the submitting.
“On September 25, 2025, Mr. Herro repeatedly threatened to report Mr. Sun to U.S. criminal authorities over these unspecified KYC issues — which Mr. Herro and World Liberty have refused to explain in anything other than the broadest terms despite repeated requests from Plaintiffs for additional information,” Tuesday’s submitting stated.
WLFI has but to file a response to Sun’s go well with.
