World Liberty Financial (CRYPTO: WLFI) sued Justin Sun for defamation Monday as WLFI surged more than 20% in three days.

The Short-Selling Accusations

World Liberty filed the lawsuit in Florida state court, claiming Sun funded a deliberate short-selling campaign to suppress WLFI’s price when the token launched in September.

The company froze Sun’s token position to prevent further harm, citing rights outlined in his unlock agreement.

Sun began privately threatening litigation afterward, allegedly claiming his lawsuit would “light World Liberty on fire” and cause WLFI’s price to “go to shit.” 

World Liberty argues Sun then launched a coordinated media smear campaign.

The company…

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