escalated his feud with Justin Sun into a potential legal fight on Sunday night, when tensions over his recent loan to a related DeFi project escalated into a public confrontation.
“Does anyone still believe in @justinsuntron?” the project wrote in X. “We have the contracts. We have the evidence. We have the truth. See you in court, friend.”
Does anyone still believe @justinsuntron ?
Justin’s favorite move is playing the victim while making unfounded accusations to cover up his own misconduct.
Same playbook, different goal. WLFI is not the first.
We have the contracts. We have the evidence. We have the truth.
See…
— WLFI (@worldlibertyfi) April 12, 2026
The legal threat came after Sun accused the Donald Trump-linked WLFI outfit of treating its users like personal ATMs after the latter deposited 5 billion WLFI tokens as collateral on DeFi lending platform Dolomite to borrow around $75 million in stablecoins.
“Every action taken by the WLFI team to charge fees to users and treat the crypto community like a personal ATM is illegitimate,” Sun wrote on Sunday.
In September, Sun froze its WLFI tokens with the project alleging that Tron’s founder attempted to sell the tokens to cash them out early. Sun denied the allegations and on-chain data backs him up.
“Whoever is hiding behind this official account, please come forward and identify yourself,” Sun responded to WLFI.
Whoever is hiding behind this official account, please step forward and identify yourself. Every action taken by the WLFI team to secretly implement backdoor controls on users’ assets, freeze investors’ funds without disclosure or due process, and treat the crypto community like…
— SE Justin Sun 👨🚀 🌞 (@justinsuntron) April 12, 2026
“As the largest investor in this project, I demand that those responsible come forward by name, instead of hiding in the shadows,” he continued.
The clash marks a sharp escalation in the dispute between WLFI and one of its early sponsors, moving the governance and use of capital dispute into open legal territory.
This animosity between the two is a start in contrast to last year, when WLFI credited Sun at Consensus Hong Kong for helping get the project off a slow start.
“This guy,” WLFI co-founder Zak Folkman said on stage at Consensus, “saw that regardless of the outcome, this project is a monumental breakthrough for the entire crypto community.”
