I just saw this big scandal involving Sun Yuchen, and it's really outrageous. This guy invested $75 million into WLFI, and as a result, the team froze 98% of his tokens. Now he's directly suing the project team in California.

Speaking of which, this matter is quite complicated. Sun Yuchen initially invested $30 million, then added more to reach $75 million, and was also appointed as an advisor. But strangely, on the day the tokens went live, WLFI created a Category 3 pool exclusively for Sun Yuchen, while the other 519 investors were all in Category 1. At that time, Sun Yuchen transferred over 50 million tokens to an exchange, and his wallet was immediately blacklisted, freezing tokens worth over $100 million.

Even more absurd, the smart contract kept being upgraded. First, they added a blacklist feature, then enhanced the confiscation function. Now, with version V3 released, the team can theoretically confiscate any investor’s tokens at any time. Sun Yuchen also discovered some suspicious operations—WLFI staked billions of dollars worth of tokens on Dolomite to borrow stablecoins, and the co-founder of Dolomite is the CTO of WLFI, which looks like self-dealing.

Now Sun Yuchen is taking proactive action and directly suing WLFI. Will he win this case? Watching WLFI’s price drop 8.37%, the market is clearly on the sidelines. I heard Sun Yuchen has looked pretty worn out these days—this situation is really heartbreaking.