World Liberty Financial (WLFI), a decentralized finance protocol affiliated with the Trump family, has filed a defamation lawsuit against TRON (TRX) founder Justin Sun.
According to the announcement posted on X on May 4, WLFI is accusing the crypto entrepreneur of organizing “a coordinated media smear campaign” that affects the reputation of the entire sector.
“This is about the integrity of decentralized finance. When a major investor tries to destroy the project’s reputation, it threatens the trust of every holder. We cannot allow that,” WLFI wrote.
The legal clash follows an earlier lawsuit initiated by Sun himself last August in California federal court, when he alleged that the Trump-linked project unfairly froze his WLFI holdings and stripped him of governance rights.
Trump-related cryptocurrencies see a massive spike in trading volume
Given the high-profile nature of the dispute, a number of digital assets with ties to the Trump family saw a noticeable uptick in daily trading volumes.
The WLFI token itself is up nearly 10% on the daily chart, trading at $0.06232 at the time of writing, while its 24-hour trading volume is up more than 43%, according to the latest CoinMarketCap data.
Thanks to the buzz surrounding the lawsuit, WLFI has managed to rebound from a sharp sell-off last week that saw the token hit an all-time low amid backlash over an alleged undisclosed sale of 5.9 billion tokens to private investors.
Similarly, the two meme coins associated with the president and the first lady, namely OFFICIAL TRUMP (TRUMP) and Official Melania Meme (MELANIA), saw their trading volumes shoot up 15% and 110%, respectively.
TRUMP briefly hit $2.3687, while MELANIA had an intra-day high of $0.1049. They are both, however, 1% in the red again at the time of writing, as the initial hype died was not strong enough to maintain any prolonged rally.
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