escalated his dispute with Justin Sun into a potential legal battle Sunday evening, as tensions over his recent loan to a connected DeFi project escalated into a public showdown.
“Does anyone still believe @justinsuntron?” the project wrote about X. “We have the contracts. We have the evidence. We have the truth. See you in court, buddy.”
Does anyone still believe @justinsuntron ?
Justin’s favorite move is to play the role of the victim while making baseless allegations to cover up his own misconduct.
Same playbook, different target. WLFI is not the first.
We have the contracts. We have proof. We have the truth.
See…
– WLFI (@worldlibertyfi) April 12, 2026
The legal threat came after Sun accused the Donald Trump-linked WLFI team 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.
“All measures taken by the WLFI team to extract fees from users and treat the crypto community like a personal ATM are illegitimate,” Sun wrote on Sunday.
In September, Sun saw its WLFI tokens frozen, with the project alleging that the Tron founder attempted to sell the tokens to cash out early. Sun has denied the allegations and on-chain data confirms this.
“Whoever is behind this official narrative, come forward and identify yourself,” Sun responded to WLFI.
Whoever is behind this official account, come forward and identify yourself. Every step taken by the WLFI team to secretly implant backdoor controls on user assets, to freeze investor funds without disclosure or due process, and to treat the crypto community as a…
— HE 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 a feud between the WLFI and one of its early backers, moving the conflict from governance and use of capital to open legal territory.
This animosity between the two contrasts with last year, when WLFI credited Sun of Consensus Hong Kong with helping the project emerge from a slow start.
“This guy,” WLFI co-founder Zak Folkman said on stage at Consensus, “saw that whatever the outcome, this project is a monumental step forward for the entire crypto community.”
