Ten months ago, Eric Trump posted on X how much he loved Justin Sun. This week, he compares a lawsuit filed by Sun to the famous banana stuck for $6 million.
Sun filed a lawsuit Monday in the Northern District of California, accusing World Liberty Financial of illegally freezing approximately four billion WLFI tokens worth approximately $1 billion. Tuesday’s informal response from the Trump family-backed DeFi company dismissed the lawsuit as a “desperate” deflection and vowed to continue protecting its users, with co-founder Zach Witkoff accusing Sun of “misconduct.”
Justin Sun’s recent lawsuit against @worldlibertyfi is a desperate attempt to distract from Sun’s own misbehavior. His claims are completely baseless and World Liberty hopes the case will be dismissed quickly.
He engaged in misconduct that required World…
-Zach Witkoff (@ZachWitkoff) April 22, 2026
Neither he nor the company elaborated on Sun’s alleged misconduct. A company spokesperson declined to comment, instead referring CoinDesk to Witkoff and co-founder Eric Trump’s posts on X.
The complaint itself can fill in the gaps. Sun alleged that World Liberty made a series of shifting accusations against him during private conversations and correspondence, none of which he claimed were supported by evidence.
According to the filing, World Liberty has repeatedly blamed Sun for the approximately 40% price drop that $WLFI experienced on September 1, 2025, the first day the token became tradable.
WLFI also claimed that Sun drove down the price by shorting perpetual futures contracts on a centralized exchange, according to Sun’s complaint, an accusation that Sun said was false and that it would be difficult to pin the complaint’s ratings on him, given that his transfers took place hours after the steepest decline.
World Liberty separately objected to Sun’s purchase of $100 million in $TRUMP tokens from another Trump-backed project, according to the filing, but Sun said that purchase received the blessing of a member of the Trump family who is a partner in both companies.
The company also allegedly accused Sun of acting as a straw buyer for other investors in violation of its token purchase agreement, executing prohibited transfers to the HTX and Binance exchanges and submitting inadequate know-your-customer documentation, according to the filing.
“On September 25, 2025, Mr. Herro repeatedly threatened to report Mr. Sun to U.S. criminal authorities for these unspecified KYC issues – which Mr. Herro and World Liberty refused to explain in anything other than the most general terms despite Plaintiffs’ repeated requests for additional information,” Tuesday’s filing said.
WLFI has not yet filed a response to Sun’s complaint.
