Judge Rules Sun's Claims Against World Liberty Remain in Court

A federal judge in California has ruled that Tron founder Justin Sun's individual claims against World Liberty Financial will remain in public court proceedings, rejecting the crypto project's attempt to move the entire dispute into private arbitration. The decision, announced by Sun following a hearing on August 20, represents a partial procedural victory in the ongoing legal battle.

The case, Sun et al. v. World Liberty Financial LLC, was filed in April in the U.S. District Court for the Northern District of California. Sun, who invested $45 million in World Liberty Financial during its early token sales, alleges the company committed fraud by using hidden administrative controls within its WLFI smart contract to freeze his token holdings and restrict his governance rights. He characterizes these functions as an undisclosed backdoor that allows the project to freeze, restrict, or burn tokens at will.

World Liberty Financial has denied all wrongdoing. The company maintains that its risk disclosures authorized it to block or freeze wallet addresses and associated tokens when connected to illegal activity or violations of its terms. It has stated that Sun agreed to this authority...