Justin Sun vs WLFI: $75 Million Dispute Escalates into Public Legal Battle

By the end of Sunday, the dispute with Justin Sun escalated into a potential legal battle, as tensions around their recent loan for a related DeFi project burst into an open confrontation.
“Does anyone still believe @justinsuntron?” the project wrote on X. “We have a contract. We have evidence. We have the truth. See you in court, friend.”

The legal threat came after Sun accused the WLFI group of having ties to Donald Trump, alleging that they treated their users like personal ATMs after the person sent 5 billion WLFI tokens as collateral on the DeFi lending platform Dolomite to borrow about 75 million dollars in stablecoins.
“Any actions taken by the WLFI group to charge fees from users and treat the crypto community like a personal ATM are illegal,” Sun wrote on Sunday.
In September, Sun said he was reportedly frozen out of his WLFI tokens by the project, claiming that the Tron founder had tried to sell the tokens to raise funds early. Sun denied the allegations, and the on-chain data also proved it.
“Anyone hiding behind this official account—step out and identify yourself,” Sun wrote again to WLFI.

“As the largest investor in this project, I demand that those responsible come forward, rather than hiding in the shadows,” he continued.
This clash marks a major escalation in the feud between WLFI and one of the organization’s original investors, shifting the dispute from governance and capital-use issues into the realm of public law.
The confrontation between these two sides stands in sharp contrast to last year, when WLFI credited Mr. Sun at Consensus Hong Kong for helping the project get through its slow start.
“That guy,” Zak Folkman, the co-founder of WLFI, said on stage at Consensus, “realized that regardless of the outcome, this project is a breakthrough step forward for the entire crypto community.”