Justin Sun: Court Rejects World Liberty's Request to Transfer His Personal Claims to Arbitration; Related Lawsuit to Proceed in Open Court

On August 21, Tron founder Justin Sun stated on platform X that his legal team recently attended a hearing at the U.S. Federal Court in California, opposing World Liberty Financial's (WLFI) move to transfer the dispute between the parties to non-public arbitration and seal related documents. The court ruled that all personal claims raised by Justin Sun will continue to be heard in open court, while also declining to support World Liberty's request to submit all company-related claims to arbitration, requiring both parties to further negotiate which company claims remain in court and which proceed to arbitration.

Justin Sun said he had invested $45 million to purchase WLFI tokens and accused World Liberty of subsequently using smart contract permissions to freeze and restrict his tokens, and of threatening to destroy related assets. He stated that the current lawsuit claims amount to hundreds of millions of dollars, and that he had previously obtained a court order prohibiting World Liberty from destroying, redistributing, or otherwise permanently disposing of his related tokens. Additionally, Justin Sun raised questions about the assets and solvency of World Liberty and USD1, mentioning that World Liberty deposited approximately 5 billion WLFI tokens into Dolomite as collateral and allegedly borrowed at least $75 million in stablecoins. He said investors should pay attention to whether World Liberty has sufficient resources to cover potential litigation, debts, and other obligations, and should remain cautious regarding WLFI and USD1.

[TechFlow]