WLFI filed a defamation lawsuit against Sun Yuchen, accusing him of initiating defamatory activities to lower token prices

World Liberty Financial (WLFI) announced a defamation lawsuit against Sun Yuchen on platform X.

WLFI alleges that Sun Yuchen, through his wholly-owned entity Blue Anthem, holds approximately 4 billion $WLFI tokens: when purchasing the tokens, Sun Yuchen was clearly aware that $WLFI tokens are non-transferable, signed a token unlocking agreement, committed not to short sell, and agreed that WLFI has the right to "decide to freeze any violating wallets."

After WLFI executed a freeze on the relevant tokens based on the sales terms, Sun Yuchen did not seek a good faith resolution; instead, he initiated a coordinated smear campaign, spending money to hire influencers and deploy bots to spread false information to over 4 million followers, warning that if his demand for hundreds of millions of dollars was not met, the price of $WLFI tokens would "drop to the ground."

WLFI stated that the aforementioned freezing function was clearly disclosed in the sales terms, the governance mechanism is transparent and community-driven, and they will pursue legal action against Sun Yuchen.