Judge Rejects World Liberty's Bid to Arbitrate Dispute with Justin Sun

A federal judge in San Francisco has ruled that TRON founder Justin Sun's individual claims against World Liberty Financial will remain in open court, rejecting the company's request to route the dispute into private arbitration.

The decision by Judge James Donato was a partial win for Sun, who had argued that his personal claims should not be subject to arbitration. The judge also directed the parties to work out which of the corporate plaintiffs' claims will go to arbitration and which will remain in court.

The dispute between Sun and World Liberty centers on the company's addition of a blacklist function to the WLFI contract, which was used to freeze 600 million tokens that Sun had been cleared to trade. The move led to a significant drop in the token's value, and Sun is seeking damages.

Sun has also accused World Liberty of using its stablecoin, USD1, as collateral on the lending market, potentially leaving it insolvent in case of a large judgment against the company. World Liberty has denied these claims and argued that arbitration was the proper venue for resolving the dispute.