Step 1: Public Opinion Explosion - 'All Network Reviews'
Sun Yuchen's rights protection started with 'complaining'. Since September 3rd, he has sent out 8 posts on X, cursing from 'crypto freedom' to 'centralized tyranny'. The most extreme one: 'They froze 500 million USD of mine, but they can't freeze my belief in decentralization! All big players are watching - if they can freeze me today, they can freeze you tomorrow!'
This move directly penetrated the heat. 3.2 million fans forwarded 100,000+ in half an hour, #SunYuchenBeingAttacked# soared to hot search. But the comments section is more divided than the currency price:
Supporters: 'Old Sun is a big player and also a user, why should the project side freeze him just because they say so?' ( @DeFi Fundamentalist )
Critics: "Laughing to death, Lao Sun, who used to harvest TRX, is now pretending to be a victim?" (@Retail investors who were harvested)
Onlookers: "WLFI itself has overissued tokens and played games with locked assets; Lao Sun being frozen is karmic retribution." (@Crypto observer Ah Wei)
He even tagged Aave's founder, the core developer of Tron, and even Alt5 Sigma's official WeChat account from the Trump family. The Aave founder replied, 'Decentralization is not just a slogan', directly pushing the heat to a new high. Lao Zhou shook his head: 'This Lao Sun is skilled in public opinion warfare—turning small matters into nationwide topics, forcing the project parties to respond.'
Project party's response: WLFI officials issued three statements claiming 'freezing prevents manipulation', but on-chain data revealed they secretly transferred 20 million tokens (worth 3.7 million USD) after the freeze, being criticized as 'thieves shouting to catch thieves'.
Step Two: Legal Prosecution—"See you in court, I'll sue you to bankruptcy."
After three days of public opinion war, Sun Yuchen dropped a bomb: suing the WLFI project party in Delaware court for 'breach of contract + infringement', claiming $550 million (the value of frozen coins + market losses).
The core of the lawsuit is just two points:
The white paper states 'non-discriminatory freeze clauses', but now freezing big holders is a breach of contract.
The freeze caused him to miss the 'strategic investment window', and he wants to claim 'mental damages' (which he actually wrote).
Informed friends say: "Winning depends on two points—whether the court recognizes the 'admin key' as legal, and whether Sun Yuchen can prove that 'the freeze directly caused losses'." But the good news is that the Delaware court has been very proactive in crypto disputes recently; similar USDC freeze cases were scheduled within three months last year.
Community response: The old-timers in the coin circle are arguing fiercely. Some are digging up old accounts: 'Why didn't you say it was a breach when USDD depegged in 2023?' Others support: 'Using legal rights protection is better than lying flat, setting rules for the project parties.'
Project party's response: The officials are pretending to be mute, but on-chain shows they are frantically hiring 'crypto legal advisors', with salaries up by 30%. Industry insiders revealed: 'Looking for lawyers who understand contract loopholes, hoping to drag it out until Lao Sun loses patience.'
Step Three: Regulatory Reporting—"Let the whole world see your market manipulation."
The harshest part is step three. On September 5, Sun Yuchen's team jointly reported WLFI to the FTC for 'abusing market dominance + illegal manipulation', while simultaneously submitting materials to the SEC, alleging WLFI's 'Trump family endorsement' involves 'political interest transfer'—for example, using Alt5 Sigma (a Trump-listed company) money to pump and dump.
Lao Zhou slapped his thigh: "This tactic is quite insidious! The FTC just fined Circle 28 million due to lack of transparency in stablecoin reserves; the SEC is focusing on RWA compliance issues, and WLFI just happens to be in the crosshairs."
Regulatory response: The FTC said 'has received the report', the SEC internally transmitted that they have retrieved WLFI's locked asset records and the Trump family's transaction flow, focusing on the 'abnormal flow of Alt5 Sigma tokens'.
Project party's response: The officials are anxious, issuing statements claiming 'the report is unfounded', but they dare not mention 'Trump family'. People close to the project party say: 'We are looking for a middleman to negotiate with Lao Sun.'
Can rights protection succeed? Three key signals.
Now there's a debate online about whether it's 'certain victory' or 'certain defeat'. I asked two people in the circle and read an article from a Trump team:
Lawyer: "Legally there's a 50% chance of winning. The court may rule that the 'admin key' is unfair, partially unfreeze, but compensating 550 million is difficult—WLFI has dropped 60%, hard to prove the freeze directly caused the loss."
Market Maker: "Market reactions indicate the problem. On the day Lao Sun issued a statement, WLFI rose 15%, but the next day it fell back—retail investors are afraid to buy, while big players are watching. If the 'admin key' is not abolished, no one dares to hold even after unfreezing."
Trump Advisor (Anonymous): "We passively dealt with Sun's situation. Alt5 Sigma holding WLFI is for ecological use, but now there's talk of 'Trump harvesting retail investors', impacting the 2026 election. It's pressuring the project team to publicly reform governance, or there could be a sell-off to stop losses."
Lastly, let me say something straightforward.
Sun Yuchen's rights protection this time is essentially a microcosm of 'big holders resisting centralized project parties'. Winning or losing is not important—the important thing is that he has torn apart the 'pseudo-decentralization' veil.
If we win, future DeFi projects won't dare to freeze big holders casually; if we lose, the 'centralized project parties' will be bolder, anyway 'freezing is non-negotiable'.
As for whether WLFI has value? It is now just a mirror—reflecting the contradictions in the crypto circle: on one hand, they shout decentralization, while on the other, they manage 'admin keys'; on one hand, they leverage political endorsements, while on the other, they fear being investigated.#特朗普家族币
