World Liberty Monetary filed a defamation lawsuit in opposition to Tron founder Justin Solar in Florida, escalating a authorized struggle between the Trump family-linked crypto platform and one in all its largest traders.
The lawsuit, filed Monday within the Eleventh Judicial Circuit Court docket for Miami-Dade County, accused Solar of creating false public statements about World Liberty and violating WLFI token-sale phrases by way of alleged prohibited transfers, short-selling and straw purchases.
The lawsuit additionally accused Solar of spreading defamatory statements surrounding the crypto platform, demanding a court-ordered retraction and compensation from the founder. Solar denied the allegations in a Monday put up on X, calling the lawsuit a “meritless PR stunt” and saying he regarded ahead to defeating the case in court docket.
The lawsuit comes lower than two weeks after Solar sued World Liberty over the freezing of his WLFI tokens, a dispute that has intensified scrutiny of the challenge’s token controls and governance construction.
The escalating authorized battle follows a interval of rising backlash in direction of the crypto platform, which got here beneath scrutiny for a proposal looking for so as to add an additional two-year lock-up interval for early traders holding the WLFI token, Cointelegraph reported on April 16.
Solar referred to as the proposal “one of the absurd governance scams I’ve ever seen.”
WLFI court docket submitting in opposition to Justin Solar. Supply: World Liberty Monetary / Businesswire
US President Donald Trump and his sons, Donald Trump Jr. and Eric Trump, are listed because the co-founders of the platform, in response to World Liberty’s white paper.
Associated: Justin Solar presses WLFI to determine wallets behind freeze powers
Solar was totally conscious of WLFI’s token freezing rights, lawsuit claims
Solar’s WLFI token deal with was blacklisted in September 2025 after blockchain knowledge platforms flagged it for a roughly $9 million switch. Solar stated his presale tokens have been unreasonably frozen and urged the crew to unlock his funding.
Nonetheless, the lawsuit claims that Solar was “totally conscious of World Liberty’s proper to freeze consumer tokens to guard its token holders and its neighborhood” and that he agreed to it within the challenge’s Phrases of Sale.
“Somewhat than performing in good religion, Justin Solar selected to defame World Liberty — repeatedly, publicly, and to thousands and thousands of followers,” Tom Clare, legal professional for World Liberty Monetary, claimed, including that the lawsuit was a “final resort” measure looking for to guard its tokenholders and workers.
The lawsuit claims that Solar beforehand agreed to WLFI’s “freezing authority” earlier than publicly calling it a hidden “lure door” in a calculated effort to “hurt World Liberty whereas probably benefiting his personal monetary positions.”
The lawsuit provides to WLFI’s prior governance considerations, after a March vote confirmed that 76% of voting energy got here from 10 wallets. Solar referred to as that an alarming signal of concentrated affect. WLFI clapped again and accused Solar of spreading baseless allegations to cowl up his personal misconduct and threatened authorized motion.
WLFI/USD, all-time chart. Supply: CoinMarketCap
The WLFI token rose 5% within the 24 hours main as much as 1:43 p.m. UTC on Monday, however is down over 80% since launch, in accordance to CoinMarketCap knowledge.
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