World Liberty Financial (WLFI) escalated its ongoing feud with investor Justin Sun on Sunday, publicly threatening legal action against the Tron founder. The project declared on X, "We have the contracts. We have the evidence. We have the truth. See you in court pal."
The confrontation follows accusations from Sun regarding the project’s recent financial activities. Sun alleged that the WLFI team is using its user base as a "personal ATM" after the project deposited 5 billion WLFI tokens as collateral on the lending platform Dolomite to secure approximately $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 X on Sunday. He further demanded that the individuals operating the WLFI account step forward and identify themselves, claiming they are "hiding in the shadows."
A breakdown in relations
This public hostility marks a significant shift for the project, which previously credited Sun for helping stabilize its early operations. The relationship began to sour in September 2025, when WLFI froze Sun’s tokens, alleging he attempted to cash out early. Sun has denied those claims, and on-chain data has provided support for his position.
Sun’s latest criticism centers on the project's governance and its decision to leverage its own tokens for liquidity. By borrowing against the WLFI token on Dolomite, Sun argues the project is prioritizing its own financial interests over those of its investors.
The project maintains that its actions are contractually sound and transparent. By vowing to take the dispute to court, WLFI has moved the conflict from governance debates into potential litigation, signaling that the project intends to defend its financial strategy against one of its most prominent early backers.
