First Digital CEO piles on as Justin Sun fights World Liberty defamation lawsuit
Vincent Chok, the CEO of First Digital Trust, the Hong Kong-based custodian that Justin Sun, the founder of the Tron network, has been locked in a years-long legal battle with, interjected today as Sun faces a new lawsuit that traces up to the office of the president of the United States.
The executive implied that Justin Sun was the troublemaker in both instances of his publicly chronicled legal drama after Sun was hit with a defamation lawsuit by the Trump family’s DeFi project, World Liberty Financial (WLFI).
Why is Justin Sun being sued?
Justin Sun, the founder of the Tron blockchain (TRX) and advisor to World Liberty Financial (WLFI), is defending himself against defamation claims from the WLFI project. At the same time, he is also pursuing his own allegations against Hong Kong-based custodian First Digital Trust (FDT).
Vincent Chok, the CEO of First Digital Trust, has largely remained less vocal in the dispute with Sun for the last twelve months. However, Chok responded to the WLFI lawsuit, which was filed on May 4, asking; “Is this a trend?”
Chok claims that for over a year, Justin Sun has made various allegations against FDT but has failed to produce supporting evidence in court. He noted that Sun has offered escalating bounties, rising from $50 million to $100 million, for anyone who can find “internal evidence” against FDT.
Twelve months later, no one has publicly come forward.
Chok implied through a post on X that Sun’s credibility was dented by his bounties failing to yield results, as that shows that there was no evidence to find.
The FDT dispute dates back to 2024 and concerns the reserves of the TrueUSD (TUSD) stablecoin. Documents prepared for the U.S. Department of Justice by Techteryx, TUSD’s issuer, claimed that approximately $456 million was diverted by FDT to a Dubai-based entity, Aria Commodities DMCC.
These allegations remain untried in court, but Vincent Chok “categorically denied any wrongdoing” in his recent statements. He maintains that FDT acted strictly as a fiduciary intermediary, executing instructions provided by Techteryx.
On the other side, Justin Sun, in a prior statement regarding the TUSD situation, publicly claimed that FDT was “effectively insolvent” and urged users to secure their assets, though those claims have also not been substantiated in a final court ruling.
Why did World Liberty Financial sue Justin Sun?
As Cryptopolitan reported, World Liberty Financial (WLFI) filed a defamation lawsuit against Justin Sun in a Florida state court to counter a lawsuit Sun filed against it in April 2026. In his lawsuit, Sun alleged the company had illegally frozen his tokens.
WLFI is now accusing Sun of launching a “coordinated media smear campaign” against the project. They allege that after purchasing WLFI tokens, Sun engaged in “prohibited transactions,” including transferring tokens to the exchange Binance and short-selling the token.
The lawsuit states that not only were Sun’s actions designed to drive the token price “to shit” in order to harm other holders, but that their ability to freeze tokens was fully disclosed in their Terms of Sale, which he agreed to.
Justin Sun dismissed the lawsuit immediately, calling it a “meritless PR stunt.”
“I stand by my actions and look forward to defeating the case in court,” Sun said.
Despite the legal turmoil, WLFI’s token is up nearly 5.5% over the last 24 hours, following the news of the lawsuit. However, CoinMarketCap data shows the token is down roughly 79% since it began public trading in September 2025.
Sun reportedly holds a stake of 4 billion tokens, currently worth approximately $264 million.
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