The dispute between WLFI$0.07907 and Justin Sun intensified into a potential legal confrontation on Sunday, as tensions over a recent loan to an affiliated DeFi project erupted publicly.
“Does anyone still believe @justinsuntron?” the project inquired on X. “We possess contracts, evidence, and the truth. Prepare for court, pal.”
“Does anyone still believe@justinsuntron? Justin often portrays himself as a victim while making unfounded allegations to obscure his own wrongdoings. It’s a familiar strategy with different targets. WLFI isn’t the first,” they added.
The legal threat emerged after Sun accused the Trump-affiliated WLFI team of exploiting its users like personal ATMs, following their deposit of 5 billion WLFI tokens as collateral on Dolomite to secure approximately $75 million in stablecoins.
“Each action by the WLFI team to charge fees from users and exploit the crypto community as a personal ATM is illegitimate,” Sun posted on Sunday.
Previously, in September, Sun’s WLFI tokens were frozen after the project alleged that he attempted an early cash-out by selling these tokens. Sundenied this accusation, with on-chain data supporting his stance.
“Reveal your identity behind this official account,” Sun replied to WLFI.
“Reveal yourself whoever is behind this official account. Each action taken by the WLFI team involving secret backdoor controls over user assets, freezing investor funds without transparency or due process, and exploiting the crypto community…”
“As the largest investor in this project, I insist those responsible reveal their identities rather than hiding,” he continued.
This clash marks a significant escalation in a feud between WLFI and an early backer, moving from governance issues to potential legal proceedings.
This hostility contrasts with last year’s praise where WLFI credited Sun at Consensus Hong Kong for helping propel the project past its initial challenges.
“This individual,” WLFI co-founder Zak Folkman said on stage at Consensus, “recognized that regardless of results, this initiative is a groundbreaking step for the entire crypto community.”