Judge keeps Justin Sun’s $45M lawsuit against World Liberty in open court
A California federal judge has dealt World Liberty Financial an unwelcome setback, ruling that Justin Sun‘s individual lawsuit against the project will stay in open court rather than moving behind closed doors. The decision keeps a spotlight on one of crypto’s most closely watched legal disputes, and it comes as the fight between Justin Sun and World Liberty widens into questions about token control, stablecoin risk, and whether the project can even afford to lose.
Key takeaways
- A California federal judge ruled Justin Sun’s individual claims against World Liberty Financial will remain public rather than shifting to private arbitration.
- Sun invested $45 million in WLFI tokens and says that backing helped push the project’s token sale past $550 million.
- Sun alleges World Liberty built hidden backdoor controls into WLFI’s smart contract and the USD1 stablecoin, letting the team freeze, restrict, or burn tokens without notice.
- World Liberty reportedly posted roughly five billion WLFI tokens as collateral at Dolomite, a lending platform co-founded by the company’s own chief technology officer.
- Sun says USD1’s $4 billion market cap represents user collateral, not company funds, raising doubts about whether World Liberty can cover a judgment.
Court Ruling Keeps Justin Sun’s Claims in Public View
The judge’s ruling means Sun’s personal claims against World Liberty will proceed in open court, not in a private arbitration setting that would have kept most details out of public reach. World Liberty had asked the court to send company-related claims to arbitration as well, but the judge only partially granted that request. Instead of a clean split, the two sides were ordered to work out exactly which claims stay in court and which might still move to arbitration.
… Continue reading the full article at the original source below.
