What to know:
- WLFI and Justin Sun clash intensifies, with both sides accusing each other and hinting at court action.
- WLFI claims it has full proof and contracts, while Sun alleges “backdoor controls” and unfair wallet restrictions.
- The dispute centers on frozen funds, token controls, and Sun’s $75M investment allegedly being targeted.
The dispute between WLFI and Tron’s Justin Sun appears to be escalating further, with both parties suggesting that litigation may become inevitable. The conflict has become open, with both parties accusing each other of impropriety and making false claims.
Recently, WLFI accused Sun of “playing the victim card” and throwing baseless accusations at others as a distraction from what he himself was doing. The company, which is allegedly affiliated with Donald Trump, said unequivocally that it had all the required contracts and evidence and challenged, “See you in court.”
The reaction of Sun to the criticism was not far-fetched, as he retorted to WLFI’s team to expose themselves and made very strong accusations regarding the protocol by saying it had some “backdoor controls.”
However, despite all the heat involved in the discussion, the effect on the overall market remains fairly insignificant. In fact, despite the drop in Bitcoin of more than 3% within the last 24 hours, TRON (TRX) has stayed within the positive zone. As for its price, currently, it hovers at approximately $0.322, and WLFI has lost about 2%.
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WLFI Accused of Freezing Funds
One of the critical questions in the disagreement relates to the handling of the money belonging to users. According to a tweet posted by Sun on X, WLFI possesses the capability to block investors’ money without adequate notification or following the required procedures.
According to Sun, WLFI introduced the blacklist function into the token contracts following the commitment of funds. According to the information, the initial September 2024 contract did not have the mentioned control system, which was implemented in August 2025.
In another update in November, “batch reallocation” was introduced. This update by WLFI is explained as a security measure to retrieve the stolen property.
Justin Sun, who reportedly invested close to $75 million in the venture and was formerly its greatest supporter from outside, has alleged that he was singled out by such controls. He alleges that his wallet was frozen, making him “the first and only victim.”
Sun is said to have transferred approximately 55 million unbound WLFI tokens to his exchange, HTX, right after the first unlock.
On the other hand, WLFI has a different story to tell, saying that many of its users locked their tokens while Sun allegedly sold through back-end operations. According to WLFI, Sun’s wallet was frozen due to a violation of an agreement.
WLFI Token Control Sparks Concerns
The issue comes from the token distribution structure used in the project. Statistics have proven that Sun is vested under a different classification than others, in which only 20% of his stake is immediately accessible, while 80% is unknown when it will be released.
Issues have emerged regarding the wallets being frozen. There has been talk that a single address can freeze Sun’s wallet without requiring approval from several addresses.
Treasury operations at WLFI are currently being closely examined. It has been stated that this project uses a considerable amount of tokens in its treasury operations to generate leverage on lending platforms.
Price Trends Show Divergence
WLFI has seen tremendous selling activity, declining by over 53% in the last 90 days. At the time of writing, the token is trading at $0.0789, marking an 83% drop from its record high of $0.46.
Meanwhile, TRON (TRX) appears to be one of the coins that is experiencing relatively good performance, having risen by more than 15% in the past two months despite the current market decline.
With the situation escalating further, the result of this clash may affect much more than just the future of both companies.
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