Sun Wins Partial Court Victory Over World Liberty
Justin Sun has secured a partial court win in his ongoing lawsuit against World Liberty Financial. On Thursday, a federal judge rejected World Liberty's bid to move all of Sun's claims into private arbitration.
The ruling means that Sun's individual claims will remain in open court, while the parties will work together to determine which company-related claims should be arbitrated and which can stay in the public eye. The case, filed in April in the US District Court for the Northern District of California, revolves around Sun's $45 million investment in World Liberty, which he alleges was affected by fraud.
Sun has accused World Liberty of embedding functionality in its smart contracts to freeze his WLFI tokens and using those controls against his holdings. The company disputes these claims and has counter-sued Sun for defamation, alleging that he conducted a public campaign to damage the company's reputation and token value.