Justin Sun Outmaneuvers Trump-Backed World Liberty in Key Court Battle

Crypto mogul Justin Sun has won a key procedural battle against Trump-backed World Liberty Financial in a California court. The judge ruled that Sun's individual claims against the company will remain in federal court, keeping the dispute public while the parties determine which corporate claims should move to arbitration.

Sun invested $45 million in WLFI during its early token sale and became one of the project's largest backers. However, he alleges that World Liberty secretly added controls that allowed it to restrict or destroy tokens and later used those powers against him.

The case has been ongoing since April when Sun sued World Liberty after the company froze WLFI tokens linked to him. World Liberty denies wrongdoing and says Sun violated agreements governing his holdings.

WLFI's token value has plummeted nearly 80% since its launch, raising concerns about crypto governance, token control, legal risks for investors, and volatility.