Justin Sun Wins Procedural Battle Against World Liberty Financial

Crypto investor Justin Sun has won a procedural battle against World Liberty Financial (WLFI), a project led by the Trump family's business. A California federal judge, James Donato, ruled that Sun's individual claims against WLFI cannot be moved into confidential arbitration. This means that his allegations will continue to be handled in public court.

Sun alleges that WLFI restricted his tokens and froze $45 million of his investment. He also claims that the project's smart contracts give it the ability to freeze, restrict or burn tokens without notice. Sun has called these features 'backdoor functions' and raised concerns about similar controls in USD1, WLFI's stablecoin.

WLFI has denied Sun's allegations, calling them 'entirely meritless.' The project has also filed a counterclaim against Sun in Florida, accusing him of defamation and improper transfers. Meanwhile, WLFI continues to expand its business, recently appointing a new chief business officer for USD1 and pursuing an artificial intelligence partnership with WorldClaw.

Crypto investigator Hunter Biden has separately alleged that WLFI seized Sun's $75 million investment and borrowed $75 million using its own token as collateral. These claims have not been established as findings by a court.