As September begins, the crypto circle is directly struck by a 'thunderbolt' —— Sun Yuchen suddenly explodes on X (formerly Twitter), accusing the WLFI project party of 'freezing my 500 million dollars in tokens without any warning', followed by a combination of public opinion, legal, and regulatory 'strikes', tearing apart the 'decentralization' facade of the crypto world!
First move: the public opinion nuclear bomb! 24 hours of bombardment on 'centralized tyranny', striking the project party with on-chain solid evidence.
Sun Yuchen is known as the 'traffic warrior': within 24 hours, he posted 17 updates, each one fiery —— 'Today they can freeze my 500 million, tomorrow they can freeze your 500 bucks! This is not decentralization, it is the tyranny of the project party speaking unilaterally!'
In just a few hours, the topic #WLFI frozen 500 million dollars # surged to the top of cryptocurrency hot searches, with over 100,000 shares! The comments section has turned into a battlefield among three parties:
Supporters: 'Brother Sun is tough this time! It's about time to address the project's bad habit of freezing assets!'
Skeptics: 'Is it because they wanted to manipulate the market and got caught? Haven't we seen enough of Sun Yuchen's hype tactics?'
Neutral parties: 'Don't take sides yet! WLFI itself has a bad reputation — it was previously exposed for over-issuing its tokens by 30%, with rules that are all decided by the 'project party' in a black box!'
What's worse is that netizens directly threw up the on-chain evidence: The freezing order was issued only 3 hours ago, and the WLFI project's wallet quietly transferred 20 million tokens (worth over 12 million dollars at that time) to its own address! The project party's previous claim that 'the freeze was to prevent manipulation' was instantly slapped in the face and turned into 'self-manipulation'.
Second move: Legal hardline! The exorbitant legal team sues in the U.S., and the project party rushes to hire 'firefighters' and deletes traces in seconds.
Public opinion hasn't stopped; Sun Yuchen has now 'rushed to the United States': quickly forming a 'cryptocurrency rights protection team' — the core lawyer is a top attorney who won the SEC lawsuit against Ripple, directly suing WLFI in the Delaware federal court for 550 million dollars (demanding 20 million just for 'emotional distress' is considered exorbitant in the crypto space)!
The focus is directly locked on the 'administrator key': Sun Yuchen's side insists 'the project party privately hid the key and arbitrarily froze assets, violating the commitment to decentralization'; WLFI stubbornly claims 'the key is for emergencies', yet cannot provide supporting clauses from the smart contract.
What's even funnier is that some netizens dug up: WLFI quietly posted a recruitment notice for 'cryptocurrency compliance lawyers' on LinkedIn, offering an annual salary of 800,000 dollars, requiring 'ability to handle urgent regulatory investigations and respond to federal lawsuits' — after screenshots spread all over the internet, the project party hastily deleted it, instead solidifying their 'eagerness to find reinforcements'.
Third move: Regulatory reporting! Bringing in the top ten projects to co-sign, the Trump team gets dragged into the mess.
Sun Yuchen took an even bolder step: directly pulling in the top ten DeFi projects like Aave and Curve to jointly report to the U.S. FTC (Federal Trade Commission) and SEC (Securities and Exchange Commission), accusing WLFI of 'market manipulation and false advertising', and throwing out a big bombshell — 'WLFI used the Trump family's background to facilitate benefits, backed by political capital'!
The SEC is taking serious action: they have retrieved all on-chain transfer records of WLFI and even interviewed core members of the project. On WLFI's side, when confronted by reporters about whether it was related to the Trump family, the spokesperson abruptly interrupted the interview, only saying 'no comment' — the more they avoid discussing, the more the speculation about 'privileged connections' spreads wildly. Moreover, informed sources in Washington revealed: the Trump team has privately contacted WLFI, saying 'don't involve us, quickly calm down the storm, otherwise the midterm elections will be affected,' clearly indicating a desire to 'cut ties'.
Can this battle be won? Three predictions hit hard.
From a legal perspective: industry lawyers assert 'partial unfreezing is likely to succeed' — WLFI's claim of 'preventing manipulation' doesn't hold up, but can they really recover the full 550 million in damages? Difficult! Cryptocurrency loss determinations are already a legal gray area, and 'emotional distress' is even harder to be recognized.
Market trust: WLFI has already cooled down halfway — token prices plummeted 28% in three days, market value evaporated by over 1 billion dollars, and retail investors are complaining about their holdings on social platforms, saying 'I just bought the dip and got frozen; this is not decentralization, it's clearly the project party's backyard'. Rebuilding trust? At least they'll have to wait for the SEC investigation results.
Trump's involvement: the biggest variable lies here! Once the SEC finds out WLFI is indeed related to the Trump team, not only will the project party be in trouble, but Trump's midterm election preparations will also be affected — hence the Trump team is eager to 'cut ties', and it's possible WLFI will proactively seek to settle and unfreeze some assets for self-preservation.
The one who should wake up is not Sun Yuchen, but all cryptocurrency people!
This 500 million dollar 'war' isn't really about winning or losing — what's truly being torn apart is the most painful truth in the cryptocurrency world:
How many projects shouting 'decentralization' hide the 'administrator key' as a 'backdoor'? The project party can freeze assets and change rules with a single statement; retail investors seem to hold tokens, but their lifeline is entirely in someone else's hands. Sun Yuchen's rights protection this time, whether it's 'true resistance' or 'false hype', has exposed the 'pseudo-decentralization'.
The SEC's investigation is still ongoing; will WLFI's Trump background be confirmed? Can the 500 million dollars be recovered in the end? Do you think Sun Yuchen is a 'rights defender' or a 'marketing master'? Let's discuss your judgment in the comments!
