《New York Post》: WLFI Countersues Justin Sun for Defamation

BlockBeats News, May 5th, according to the New York Post, World Liberty Financial (WLFI) has countersued Justin Sun for defamation after Justin Sun sued them. WLFI stated that they discovered at the end of last year that Justin Sun allegedly violated investment terms, including transferring tokens to an exchange without authorization, conducting proxy investments on behalf of undisclosed third parties in WLFI, and allegedly breaching contract obligations by shorting tokens, resulting in Justin Sun's tokens being frozen.

WLFI stated in the lawsuit documents that Justin Sun's continued praise of WLFI was actually a scheme to enrich himself. Justin Sun privately warned that if WLFI took action against him, it would "backfire," causing a "free fall" in WLFI's token price and "adversely affecting the entire industry." Justin Sun demanded a multimillion-dollar settlement, but WLFI refused.

WLFI also mentioned that Justin Sun's defamation has resulted in actual losses for the company, including forfeiting a potential partnership with Native Market. WLFI claimed that Justin Sun was already aware of WLFI's right to freeze tokens when signing the investment agreement. Currently, WLFI is seeking compensatory and punitive damages and is hoping the court will order Justin Sun to retract all defamatory posts.