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

escalated its dispute with Justin Sun into a potential legal fight late Sunday, as tensions over its recent loan to a connected DeFi project spilled into public confrontation.

“Does anyone still believe @justinsuntron?” the project wrote on X. “We have the contracts. We have the evidence. We have the truth. See you in court pal.”

Does anyone still believe @justinsuntron ?

Justin’s favorite move is playing the victim while making baseless allegations to cover up his own misconduct.

Same playbook, different target. $WLFI isn’t 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 team of treating its users as personal ATMs after the latter deposited 5 billion $WLFI tokens as collateral on the DeFi lending platform Dolomite to.borrow about $75 million in stablecoins.

“Every action taken by the $WLFI team to extract fees from users and to treat the crypto community as a personal ATM is illegitimate,” Sun wrote on Sunday.

In September, Sun had his $WLFI tokens frozen with the project alleging the Tron founder attempted to sell the tokens to cash out early. Sun denied the allegations, and on-chain data backs him up.

“Whoever is hiding behind this official account, step forward and identify yourself,” Sun wrote back to $WLFI.

Whoever is hiding behind this official account, step forward and identify yourself. Every action taken by the $WLFI team to secretly implant backdoor controls over user assets, to freeze investor funds without disclosure or due process, and to treat the crypto community as a…

— H.E. 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 $WLFI and one of its earliest backers, shifting the dispute from governance and capital use into open legal territory.

This animosity between the two is a start contrast from last year, where $WLFI credited Sun at Consensus Hong Kong with helping lift the project out of 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 move forward for the entire crypto community.”

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