California Judge Keeps Crypto Legal Fight Open After Rejecting Private Arbitration

A California federal judge has ruled in favor of Justin Sun's individual claims against World Liberty Financial. The decision rejects the project's bid to force private arbitration and seal the case, allowing it to remain open to public view.

The ruling keeps alive a messy crypto legal fight that began as a token-freezing dispute but has expanded into scrutiny over whether World Liberty's USD1 stablecoin can cover its obligations. This highlights transparency and counterparty risk for stablecoin holders and related DeFi/CEX exposure.