Justin Sun won a procedural court fight against World Liberty Financial, backed by Donald Trump, keeping claims tied to his $45 million WLFI (WLFI) investment in federal court.
Key Points:
- Sun’s individual claims will remain in public federal court after a judge rejected World Liberty’s attempt to send the entire dispute to private arbitration.
- The ruling does not decide whether World Liberty acted illegally, and the company can still seek dismissal before any trial.
- The case grew from World Liberty’s freeze of Sun-linked WLFI tokens after he became one of the project’s largest early investors.
Justin Sun Ruling
A California federal judge on Thursday, Aug. 20, rejected World Liberty’s effort to force all of Sun’s claims into private arbitration, according to BeInCrypto. His individual claims will stay in court.
The judge also directed both sides to determine which claims involving companies controlled by Sun should remain in federal court and which should move to arbitration. “The judge ruled that all of my individual claims will remain in the public courtroom,” Sun said on X after the hearing.
The order does not resolve whether World Liberty acted illegally, and the company can still seek dismissal before trial while Sun’s personal claims remain in a public forum.
Sun sued World Liberty in April after the company froze WLFI tokens linked to him, alleging it had secretly created controls that could restrict or destroy tokens. World Liberty denies wrongdoing and says Sun violated agreements governing his holdings, while Sun says the freeze improperly stripped him of rights attached to his investment.
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World Liberty Stakes
Sun invested $45 million in WLFI during the project’s early token sale and became one of its largest backers before the relationship deteriorated. The dispute now centers on control over his holdings.
World Liberty has accused Sun of improperly moving tokens and taking part in activity intended to pressure WLFI’s price, allegations he denies, while the public federal case could expose future filings and evidence to greater scrutiny.
WLFI has remained volatile during the legal fight. The token had lost nearly 80% of its value since launch, adding market pressure to a dispute that began with a major early investment and expanded into questions over governance, token controls and unlock schedules.
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