🔍Case solved! ETH's recent decline was actually caused by Sun's conflicts with Huang Mao over "mutual love and killing"

Background summary: Brother Sun angrily criticizes WLFI, the year's biggest crypto drama unfolds

Originally backed by the Trump family, World Liberty Financial (WLFI).

With the "presidential halo" and crypto project aura, it has always attracted attention. Recently, it was suddenly bombarded by Sun Yuchen, and the grand curtain was thus drawn.

Last September, Sun Yuchen’s WLFI token wallet was quietly blacklisted and frozen by WLFI, with the official reason being "to prevent market manipulation."

After seven months of endurance, Sun Yuchen finally couldn’t hold back and started attacking, directly criticizing WLFI on X as a "trap disguised as a gate."

He listed several "crimes," including "extracting fees from users, secretly implanting backdoors to control user assets, freezing investors’ funds without disclosure or proper procedures, and treating the crypto community as a personal ATM."

WLFI’s official responded fiercely, retorting with a tough statement: "If you disagree, see you in court."

The conflict intensified, and in mid-April, Sun Yuchen officially filed a lawsuit in the California Federal Court, accusing WLFI of extortion and implementing an "illegal scheme" to seize his tokens.

In the lawsuit, he revealed that in 2024 and 2025, he invested a total of $45 million to buy 3 billion WLFI tokens, and additionally received 1 billion tokens for providing advisory services. The relationship between the two parties was completely broken!

At this critical moment, WLFI announced a "bombshell" proposal.

Intending to "unlock" token liquidity for early investors and insiders, involving as many as 62 billion tokens.

Claiming it was a cautious plan based on the tokenomics model, but analysts quickly saw through it—this was simply providing insiders with a way to cash out.

The two- to three-year timeframe further triggered collective community criticism, questioning whether it was just a scheme to "pump and dump."

Of course, Sun Yuchen struck again, directly calling the proposal one of the "most absurd" he’s seen, and accused it of using "coercive methods."

Potentially affecting billions of dollars worth of digital tokens, trying to undermine governance stability.

Faced with mounting external public opinion and huge internal unlocking pressure expectations, WLFI’s token price plummeted sharply, dropping below previous lows, and has now fallen to $0.06, a total decline of over 25%.

Adding insult to injury, WLFI caused another big stir at this moment.

On-chain monitoring found a wallet address suspected to be associated with WLFI sold 8,500 ETH at an average price of about $2,268, exchanging for approximately 19.27 million USDC.

Subsequently, the address repaid all loans and withdrew all funds.

Considering WLFI’s current cash-strapped financial situation and the upcoming large token unlocks, which are expected to cause serious selling pressure on the price, this transaction’s motive is quite intriguing.

The market generally guesses that WLFI is panicking, preparing in advance for the potential buyer drought and possible token price collapse.

After all, the first to face selling pressure after token unlocks are the WLFI team themselves. At this critical moment, they might be exchanging some "bullets" to prepare for future support of WLFI’s price.

This is a classic move: selling ETH to buy WLFI.

This series of moves by WLFI undoubtedly dealt a heavy blow to the already weak ETH market.

On the day of the sell-off, ETH’s price dropped about 2.5%, though it still gained about 9% within the month. The scale of this 8,500 ETH sell-off was undoubtedly one of the largest single transactions in recent weeks, further worsening ETH’s market sentiment. ETH/BTC continues to suffer, with a generally weak outlook.

What started as an internal power struggle within a crypto project unexpectedly also caused Ethereum, the "big brother," to be an innocent bystander—truly surreal.

A cycle of internal conflicts over WLFI unlocks, price defense, and the battle between individual investors and interest groups, was actually a precise on-chain harvest of ETH through very real behaviors.

Sometimes, the logic of the Web3 world can be quite heartbreaking: the conflict between Brother Sun and Huang Mao ultimately ends up with retail investors holding ETH paying the price.

After all, when gods fight, mortals always suffer.

The real biggest winners behind the scenes might be those mysterious players who watch coldly and calmly execute ETH market-making strategies.

This article is an original analysis by "Har H."

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