California Judge Keeps Justin Sun's $45M Lawsuit Against World Liberty in Open Court
A California federal judge has ruled that Justin Sun's $45 million lawsuit against World Liberty Financial will remain in open court, keeping the spotlight on one of crypto's most closely watched legal disputes. The decision comes as the fight between Justin Sun and World Liberty widens into questions about token control, stablecoin risk, and whether the project can even afford to lose.
Sun alleges that World Liberty built hidden backdoor controls into WLFI's smart contract and the USD1 stablecoin, allowing the team to freeze, restrict, or burn tokens without notice. He claims that similar backdoor mechanisms exist inside USD1, warning users that their assets could be frozen or destroyed.
The judge's ruling means Sun's personal claims against World Liberty will proceed in open court, not in private arbitration. This decision sets a different tone for how token-holder disputes might play out going forward, giving other investors, regulators, and journalists a chance to see the evidence rather than relying on sealed filings or private settlements.