First Digital CEO disputes Justin Sun amid WLFI suit

First Digital Trust CEO Vincent Chok pushed back after World Liberty Financial filed a defamation complaint against Justin Sun on May 4 in a Florida state court. Sun had sued WLFI in April 2026, alleging the project illegally froze his tokens.

Chok responded on social media by questioning whether Sun’s public allegations reflected a pattern. He noted more than a year of claims against First Digital Trust without court evidence and pointed to bounty offers that rose from $50 million to $100 million for anyone who could produce internal evidence. Chok wrote he “categorically denied any wrongdoing” and said FDT acted as a fiduciary intermediary that followed instructions from Techteryx, the issuer of the TrueUSD stablecoin.

The FDT-TUSD dispute began in 2024 after documents prepared for the U.S. Department of Justice by Techteryx alleged about $456 million had been diverted by First Digital Trust to a Dubai entity, Aria Commodities DMCC. Those allegations have not been resolved in court. Sun previously described FDT as “effectively insolvent” and urged users to secure assets; those statements remain unproven by a final court ruling.

WLFI’s complaint accuses Sun of a “coordinated media smear campaign” intended to depress the token price and harm other holders. The filing alleges Sun bought WLFI tokens, then made transfers to Binance and engaged in short-selling, in conduct WLFI says violated its rules. The complaint also points to the project’s Terms of Sale, which WLFI says disclosed the ability to freeze tokens and which Sun agreed to.

WLFI says Sun holds about 4 billion tokens, currently worth roughly $264 million. Sun dismissed the lawsuit as a “meritless PR stunt,” writing that he stands by his actions and intends to defend the case. Market data show WLFI’s token rose about 5.5% in the 24 hours after the complaint became public but remains down roughly 79% from its September 2025 trading debut.

The litigation adds to cross-border disputes involving reserve transparency, custody practices and market conduct. Both the WLFI defamation case and the unresolved allegations tied to TrueUSD are expected to move through court processes that will test the underlying claims and available evidence.