WLFI has filed a defamation countersuit against Sun, escalating a legal battle that began with Sun's lawsuit in California. Sun, an early investor in WLFI, invested $75 million and provided advisory services during 2024-2025. However, tensions arose in September 2025 when Sun transferred 2% of his unlocked tokens, despite an agreement prohibiting such transfers. This led to his address being blacklisted and the remaining 18% of his tokens frozen. In April 2026, Sun initiated legal action in California, prompting WLFI to respond with a defamation countersuit in Florida. The case, involving significant financial stakes and high-profile figures, is expected to remain in the spotlight as it progresses through the courts.