Sun Yuchen angrily stirs up huge waves in the cryptocurrency world! $500 million frozen, three moves to counter 'pseudo-decentralization'
In early September, a major incident broke out in the cryptocurrency world: Sun Yuchen accused the WLFI project party of freezing his $500 million tokens without reason and quickly launched a three-pronged counterattack of public opinion, legal action, and regulatory complaints.
Step 1: Public Pressure
Sun Yuchen posted angrily denouncing 'centralized tyranny,' warning 'today it's me, tomorrow it will be you,' quickly sparking retweets and trending topics. Public opinion split into three factions: supporters, skeptics, and neutrals, the latter pointing out that WLFI itself has issues with over-issuance and opaque rules. The project party claimed 'to prevent manipulation,' but was contradicted by on-chain data—after the freeze, they surprisingly transferred 20 million tokens to themselves.
Step 2: Legal Accountability
Sun subsequently sued WLFI in the U.S. for breach of contract, seeking $550 million in damages, including asset losses and mental compensation. The legal focus is on whether the 'admin key' is legal and whether direct losses can be determined. The project party quietly hired high-paid crypto lawyers, accused of intending to delay.
Step 3: Regulatory Reporting
Sun joined forces with the top ten project parties to report WLFI to the FTC and SEC for market manipulation and accused it of using 'Trump family background' for profit transfer. The SEC has intervened to obtain on-chain data; the project party denies the accusations but avoids discussing Trump and is reportedly seeking a private settlement.
Will the outcome be successful?
Legally, it may be partially unfrozen, but high compensation is difficult;
Market trust is hard to restore in the short term;
Trump's team is entangled in public sentiment and may pressure WLFI to rectify or sever ties.
The true significance of the event
Sun Yuchen's defense of rights reveals the truth of 'pseudo-decentralization' in the cryptocurrency field—ostensibly free and open, but relying on privileged control. Regardless of victory or defeat.
This matter warns the industry: it must move toward transparency and responsibility; true decentralization still needs practical verification.
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