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.”

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.

“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.”