Justin Sun turns against WLFI: A post-sales dispute over a commercial lease

On April 12th, Sun Yuchen published a strongly worded public statement on X, accusing WLFI of... The smart contract has a built-in blacklist function, which can unilaterally freeze any holder's assets without notice, explanation, or any appeal process.

WLFIThe official account responded quickly:" Does anyone still believe Justin Sun? Playing the victim to cover up his misconduct. See you in court, buddy. What is Justin Sun buying? To understand Justin Sun's current anger, we need to first understand what he was buying in the first place. In March 2023, the SEC formally filed a lawsuit against Justin Sun and three of his companies, alleging illegal sale of unregistered securities, manipulation of market trading volume, and hiring Lindsay Lohan. Celebrities like Lohan promoted the token but concealed the payment relationship; they were accused of illegally profiting $31 million, and also faced continued pressure from US regulators. Since 2023, Justin Sun has been avoiding entry into the United States due to legal risks. This was the situation he faced at the time. In November 2024, the winds shifted, and Trump won the election. Three weeks later, Justin Sun, through a wallet linked to Huobi, purchased $3,000,000 worth of WLFI tokens at a price of $0.015 per token, becoming the largest individual investor. At the time, WLFI sales were dismal, totaling only $21 million. Justin Sun stepped in to save the day, and the token price immediately surged by over 50%. The project team subsequently appointed him as an advisor.

2025year1Month19On the day before Trump's inauguration, Justin Sun announced an additional4500

2025year5Month, Justin Sun became the largest holder of Trump Coin" leaf="">"

2026year3Month,SECformally reached a settlement with Sun Yuchen, and its affiliated companies only need to pay1000

Who needs this deal more?

A core logic in "The Art of the Deal" is that the person who needs the deal less always holds the pricing power.

In this game, Justin Sun faces federal litigation, a Department of Justice investigation, and the risk of being ousted from the entire US capital market. If the case proceeds, the alleged amount of illegal activity is $31 million, with potential civil penalties starting at around $60 million. The criminal risk, however, means imprisonment, a problem that money cannot solve. Moreover, every day that Tron's listing on Nasdaq is delayed means one less day of window for its listing.

2025Year9month, frozen by WLFIfrozen for more than1

37After-sales liquidation of Tianhou

2026Year3month

3737 days later, he posted that statement targeting Xon. The timing was not a coincidence. Just days before his statement, the market discovered that WLFI had staked 50 billion governance tokens on the Dolomite lending protocol, lending out approximately [amount missing]. leaf="">7500$10,000 stablecoin——AndDolomiteco-founder and also serves asWLFIadvisor andCTO。

The project team used its own issued tokens as collateral to borrow money, transferring funds between different parties,WLFISubsequently, it plummeted to an all-time low. This is not only for the residual value that has shrunk to $43 million, but also a precise deterrent. He chose to launch his attack at the crucial moment when problems arose, making his own victim narrative more believable. Settling the score isn't complicated. He probably only lost about $20 million buying Trump Memecoin. The commercial aspect was cut short, while the compliance aspect was fully realized. He didn't lose to Trump, but to WLFI's operations team. He found a bigger protector, but those under that protector conveniently skimmed off his money. The Quietest Loser

WLFIThe ability to sell at such a high price relies on the power premium created by the endorsement of the Trump family; the ability to maintain this price for so long relies on the market signal of continuous endorsement from Justin Sun, the largest individual investor.

As the largest individual investor and advisor of the project, Justin Sun, when investing tens of millions of dollars, theoretically had far more knowledge of the project's code architecture and governance logic than the average person.

The Quietest Loser

As the largest individual investor and advisor of the project, Justin Sun, when investing tens of millions of dollars, theoretically had far more knowledge of the project's code architecture and governance logic than the average person.

At the time, this centralized control was seen as a necessary tool for maintaining project stability; today, however, when these tools are used to lock up his own assets, it officially becomes a pretext for attack. This is no longer a debate about the spirit of decentralization, but a forced game about asset liquidity. In this game, credit itself becomes a priced resource, and tokens are more like a carrier circulating around it. When disagreements arise in allocation, the conflict becomes explicit. Now, that $43 million remains frozen, as the price of the coin shrinks daily. In the crypto world, the phrase "See you in court" usually stops at social media, and the two sides will most likely end up making a behind-the-scenes compromise. Those ordinary investors who entered the market at the high of the US dollar (0.33) never had their profits or losses recorded in the overall account of this core game. The losses they suffered were neither entry fees nor bargaining chips, but merely fuel in the process of monetizing power.