World Liberty Financial has filed a defamation lawsuit against crypto billionaire Justin Sun, escalating a legal battle that began when Sun sued the Trump-affiliated project last month over claims that it unfairly froze his WLFI token holdings. The back-and-forth pits two controversial players against each other in what amounts to a public finger-pointing contest, with World Liberty Financial tied closely to the Trump family through co-founders including Donald Trump Jr. and Eric Trump, who have helped oversee a venture that played a key role in reportedly generating more than $1.4 billion in crypto-related income for the family in 2025 alone.

From World Liberty Financial’s perspective, Sun crossed the line after the…