Recently, some U.S. lawmakers expressed strong concerns about the SEC's handling of the case related to Sun Yuchen. They pointed out that institutions under Sun Yuchen made an investment of up to $75 million in WLFI tokens issued by entities associated with Trump, a move that brought about $400 million in profits to Trump's camp, with a high likelihood of interest transfer and potential conflicts of interest.
It is reported that Sun Yuchen, as the founder of the TRON blockchain, is quite controversial in the cryptocurrency field. Previously, the SEC filed a lawsuit against Sun Yuchen and his three wholly-owned subsidiaries (Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc.) in March 2023, accusing them of market manipulation and unregistered securities offerings and sales through the cryptocurrency assets Tronix (TRX) and BitTorrent (BTT). At that time, the SEC stated that Sun Yuchen attempted to artificially increase TRX trading volume through a virtual trading (wash trading) scheme, conducted over 600,000 TRX virtual trades, and orchestrated celebrity promotional activities to entice investors to purchase the related tokens, while concealing the remuneration paid to celebrities.
However, a dramatic turn of events occurred after Sun Yuchen made a large investment in the WLFI token. The SEC unexpectedly withdrew its fraud lawsuit against the WLFI token. More astonishingly, according to relevant data, the value of the WLFI token skyrocketed, directly increasing Trump's personal wealth by about $5 billion. This series of events has raised high alert among legislators, who believe that the SEC's actions are difficult to justify, with complex interests involved, leading to doubts about the SEC's fairness and independence in handling the case.
Multiple legislators have publicly expressed doubts about Sun Yuchen's investment in WLFI. From the timeline, Sun Yuchen quickly invested $30 million shortly after Trump's election victory, and then on the day of Trump's inauguration, he added another $45 million investment, bringing his total investment in WLFI to $75 million. This series of closely connected investment actions makes it hard not to wonder whether there is some kind of political and business interest bundling behind it.
Legislators are especially concerned about the interests of retail investors. They warn that Sun Yuchen's past accusations of market manipulation and the unusual circumstances surrounding the SEC's handling of the case greatly increase the likelihood of retail investors facing the risk of price manipulation. In the current market environment, retail investors have relatively limited channels for obtaining information, and if the market is maliciously manipulated, they will be the first to suffer losses.
Based on this, relevant legislators have officially notified the SEC, requesting that the SEC must provide detailed and reasonable clarifications on key issues such as the reasons for withdrawing the fraud lawsuit against the WLFI token and whether there is a connection between Sun Yuchen's investment and the handling of the case by October 2, 2025. They expect the SEC to reconsider this case to uphold the fairness and justice of the market and protect the legitimate rights and interests of investors.
In the context of an already highly volatile cryptocurrency market with inadequate regulation, this incident undoubtedly sounds the alarm once again. Investors must remain highly vigilant and carefully assess risks when facing the complex and ever-changing cryptocurrency investment projects. Follow crypto experts for more exciting interpretations of the cryptocurrency market and the latest news, helping you gain insights and avoid potential risks in the complex cryptocurrency wave.
