WLFI threatens legal action against Justin Sun after he accuses Trump-linked project of deceptive DeFi deals

12 hours ago

Trump-backed crypto task says it has ‘contracts’ and ‘evidence’ aft Sun accused it of exploiting users.

Updated Apr 13, 2026, 6:09 a.m. Published Apr 13, 2026, 5:56 a.m.

Justin Sun of TRON and Zak Folkman of World Liberty Financial speaks astatine  Consensus Hong Kong 2025 by CoinDesk (CoinDesk/Personae Digital)

What to know:

  • World Liberty Financial escalated its quality with aboriginal backer Justin Sun into a imaginable ineligible battle, publically accusing him connected X and declaring, "See you successful court."
  • Sun has fired backmost by calling WLFI's actions illegitimate, alleging the squad secretly implanted backdoor controls and froze capitalist funds without owed process, and demanding those liable place themselves.
  • The clash marks a crisp interruption from past year, erstwhile WLFI publically credited Sun with helping rescue the task from a dilatory start, underscoring however their feud has shifted from governance disputes to unfastened ineligible threats.

WLFI$0.08011 escalated its quality with Justin Sun into a imaginable ineligible combat precocious Sunday, arsenic tensions implicit its caller indebtedness to a connected DeFi project spilled into nationalist confrontation.

“Does anyone inactive judge @justinsuntron?” the task wrote connected X. “We person the contracts. We person the evidence. We person the truth. See you successful tribunal pal.”

Does anyone inactive judge @justinsuntron ?

Justin’s favourite determination is playing the unfortunate portion making baseless allegations to screen up his ain misconduct.

Same playbook, antithetic target. WLFI isn't the first.

We person the contracts. We person the evidence. We person the truth.

See…

— WLFI (@worldlibertyfi) April 12, 2026

The ineligible menace came aft Sun accused the Donald Trump-linked WLFI squad of treating its users arsenic idiosyncratic ATMs aft the second deposited 5 cardinal WLFI tokens arsenic collateral connected the DeFi lending level Dolomite to.borrow astir $75 cardinal successful stablecoins.

“Every enactment taken by the WLFI squad to extract fees from users and to dainty the crypto assemblage arsenic a idiosyncratic ATM is illegitimate,” Sun wrote connected Sunday.

In September, Sun had his WLFI tokens frozen with the task alleging the Tron laminitis attempted to merchantability the tokens to currency retired early. Sun denied the allegations, and on-chain information backs him up.

"Whoever is hiding down this authoritative account, measurement guardant and place yourself," Sun wrote backmost to WLFI.

Whoever is hiding down this authoritative account, measurement guardant and place yourself. Every enactment taken by the WLFI squad to secretly implant backdoor controls implicit idiosyncratic assets, to frost capitalist funds without disclosure oregon owed process, and to dainty the crypto assemblage arsenic a…

— H.E. Justin Sun 👨‍🚀 🌞 (@justinsuntron) April 12, 2026

"As the largest capitalist successful this project, I request that those liable travel guardant by name, alternatively of hiding successful the shadows," helium continued.

The clash marks a crisp escalation successful a feud betwixt WLFI and 1 of its earliest backers, shifting the quality from governance and superior usage into unfastened ineligible territory.

This animosity betwixt the 2 is simply a commencement opposition from past year, wherever WLFI credited Sun astatine Consensus Hong Kong with helping assistance the task retired of a dilatory start.

“This guy,” WLFI co-founder Zak Folkman said connected signifier astatine Consensus, “saw that careless of the outcome, this task is simply a monumental determination guardant for the full crypto community.”

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