Justin Sun dismisses WLFI defamation suit over frozen tokens

Justin Sun described WLFI’s Trump-backed defamation countersuit as “meritless” while a separate dispute over frozen digital tokens continues in court. The countersuit accuses Sun of making false public statements and seeks monetary damages.

The disagreement centers on control and access to a set of digital tokens that were placed on hold by either a court order or a cryptocurrency exchange after competing claims emerged. Both sides have filed legal papers asserting rights to the assets and describing how the tokens were transferred.

WLFI, a group that supports former President Donald Trump, told the court the public statements attributed to Sun damaged its relationships with partners and donors. Legal filings from WLFI ask the court to rule on the alleged defamation and to award damages for the reputational harm the group says it suffered.

Sun responded that WLFI’s countersuit does not alter his position in the underlying ownership dispute and that he will continue efforts to recover or secure control of the tokens. Sun’s legal team argued the statements at issue were factual or protected opinion and that the defamation claim fails to meet legal standards.

Neither side disclosed the amount of damages WLFI seeks. The parties have traded detailed allegations in court filings about the provenance of the tokens, the timing of transfers and the terms of any agreements between them.

The tokens remain inaccessible while the court reviews competing claims. Future procedural steps will depend on additional filings and rulings by the presiding judge. Until the court resolves which party holds legal title or authority to move the assets, the hold on the tokens is expected to remain in place.

Justin Sun is the founder of Tron and a frequent participant in legal disputes tied to cryptocurrency assets. Legal actions over frozen tokens have become more common as courts and exchanges handle multiple claims to the same assets; defamation counterclaims arise less often but appear here alongside the property dispute.