World Liberty Financial (WLFI), a cryptocurrency venture co-founded by the sons of President Donald Trump, filed a defamation lawsuit on Monday against Hong Kong-based cryptocurrency businessman Justin Sun.

WLFI alleged that Sun "is conducting a scorched earth campaign to extort hundreds of millions of dollars from World Liberty."

The lawsuit follows a lawsuit filed by Justin Sun, a Chinese billionaire and founder of the TRON blockchain, against World Liberty on April 21, accusing it of fraud.

In his lawsuit, Sun claimed that World Liberty pressured him to invest hundreds of millions of dollars in its $1 stablecoin. He stated that when he refused to invest, World Liberty retaliated by freezing his assets.

Regarding WLFI's defamation lawsuit, Sun wrote on X, "The defamation lawsuit announced today by World Liberty on X is merely a baseless PR stunt. I stand by my actions and expect this lawsuit to be thrown out of court."

Breitbart News relayed a written statement from a Trump confidant:

"Justin Sun is playing the victim, and anyone who knows his history will have no sympathy for him. Justin is a billionaire who paid the SEC a $10 million fine. He was caught shorting WLFI stock and wash trading, and decided to engage in a legal battle against the Trump family. Now that the Trump family is fighting back, he's crying to the liberal media. It's pathetic."

The lawsuit alleges that Sun engaged in prohibited transfers, wash trading, and short selling of World Liberty Financial's digital token, WLFI.

Tom Clare, attorney for World Liberty Financial, stated, "Rather than acting in good faith, Justin Sun has repeatedly and publicly slandered World Liberty to his millions of followers. World Liberty has filed this lawsuit as a last resort to set the record straight and protect its token holders, employees, and all stakeholders. We intend to prove that Sun's public statements are false, both in court and in the public arena." 

Investigative journalist Laura Loomer alleged on X: 

"Justin Sun, the founder of the Tron blockchain, has a deep and long-standing relationship with the Chinese Communist Party (CCP). He has conducted blockchain research at the Central Party School of the CCP, been accused of involvement in state-sanctioned blockchain projects, and held various positions that have helped the CCP expand its influence. Furthermore, Justin Sun is suspected of contributing to official CCP platforms and having personal relationships with Chinese government officials. Given especially World Liberty's close ties to President Trump and the Witkoff family (Jack Witkoff as CEO, his father Steve Witkoff serving as Trump's Special Envoy to the Middle East), the filing of this lawsuit and its timing raise serious questions.

Is Sun's aggressive legal and public offensive against WLFI a targeted operation by the CCP to damage Trump associates, weaken a major pro-American crypto venture, create chaos around Trump's key allies in the Iran nuclear deal negotiations, and generate a confusing news cycle months before the midterms? How can someone so deeply connected to the CCP operate freely in the United States, invest tens of millions of dollars in American crypto projects, file lawsuits, and influence financial markets?

Even members of Congress have expressed concern over Justin Sun's ties to the CCP, sending letters to the Securities and Exchange Commission (SEC). This is a very serious issue and is highly likely to be a foreign influence operation aimed at weakening the Witkoff and Trump families."

Jack Posobiec wrote on X, "Looks like Sun and the left-wing media conspired to take down Trump and the Witkoff family. It’s Trump Derangement Syndrome!"

By Sung Ku Hong, Chief Reporter of NNP USA / Special Correspondent NNP info@newsandpost.com