Sun Yuchen Gains Court Support in WLFI Dispute, Personal Claims to Proceed in Public Trial

A California federal court ruled that all of Sun Yuchen's personal claims will continue to be heard in open court, rejecting the request to refer all company-related claims to confidential arbitration; the court ordered both parties to negotiate which claims remain in court and which go to arbitration. Sun Yuchen called this a major victory, emphasizing that token holders have the right to know how the project treats those who trust it. He stated that as one of World Liberty's earliest and largest investors, he invested $45 million to obtain $WLFI tokens.

The complaint alleges that after the investment helped the token sale raise approximately $550 million, the project secretly embedded a backdoor in the smart contract allowing it to unilaterally freeze, restrict, or destroy holders' tokens, and used this to illegally seize his tokens; the lawsuit seeks damages amounting to hundreds of millions of dollars. Sun Yuchen previously obtained a court injunction prohibiting the other party from destroying or disposing of his tokens, and stated that World Liberty embedded a similar backdoor in its USD1 stablecoin. He also cited public information including the project pledging large amounts of $WLFI tokens as collateral for loans on Dolomite, and co-founder's past litigation related to Dough Finance, urging investors to conduct their own due diligence and remain cautious. The above constitutes his unilateral statements and allegations.

[ChainCatcher]