**[World Liberty Financial Files Defamation Lawsuit Against Justin Sun]** According to Foresight News and a report by the *New York Post*, World Liberty Financial (WLFI) has countersued Justin Sun for defamation after Sun initiated legal action against the company. WLFI claims that it discovered at the end of last year that Justin Sun allegedly violated investment terms, including unauthorized transfers of tokens to Binance, conducting WLFI token investments on behalf of undisclosed third parties, and engaging in token short-selling in breach of contractual obligations. As a result of these actions, Sun's tokens were frozen. In the lawsuit documents, WLFI stated that Justin Sun's continued public praise of WLFI was actually a tactic to profit. Sun privately warned that if WLFI took action against him, it would "backfire," causing WLFI token prices to "plummet" and "negatively impact the entire industry." Sun allegedly demanded hundreds of millions of dollars in hush money, which WLFI refused. WLFI further claimed that Sun's defamatory remarks have caused the company tangible losses, including the abandonment of a potential partnership with Native Market. WLFI asserted that Sun was aware of WLFI's right to freeze tokens when signing the investment agreement. WLFI is now seeking compensatory and punitive damages and is requesting the court to order Justin Sun to retract all posts related to the defamation.