OCC Approval Tests Justin Sun's Grip on $4 Billion Stablecoin USD1

Justin Sun's lawsuit against World Liberty Financial remains in public view after a California federal judge rejected the company's motion to force all claims into private arbitration. This decision keeps Sun's individual allegations exposed, with potential implications for his $4 billion stablecoin USD1.

The ruling comes six days after the Office of the Comptroller of the Currency (OCC) granted preliminary conditional approval for World Liberty Trust Company, a national trust bank set to take over issuance of USD1 and manage its reserve assets. However, this approval is still subject to pre-opening requirements and potential modifications.

The dispute between Sun and World Liberty Financial centers on control over WLFI tokens. In September 2025, the company restricted Sun-linked holdings after tokens moved toward exchanges. Sun sued in April 2026, alleging that his tokens were frozen and secretly built tools that could restrict sales once WLFI became transferable.

World Liberty disputes this account, accusing Sun of making prohibited transfers and acting against the project's interests. This underlying question has practical implications, as seen when USD1 froze wallets connected to exchange HTX during a separate dispute in June 2026. This event prompted HTX to delist USD1 entirely and convert customer balances into USDT.