Sun Wins Procedural Victory Over WLFI as Court Blocks Secret Arbitration

Justin Sun has scored a procedural victory in his ongoing legal battle against World Liberty Financial (WLFI), after a California federal judge ruled that Sun's personal claims against WLFI cannot be arbitrated privately.

The decision by United States District Judge James Donato means that Sun's allegations, which include the misuse of control features in WLFI's smart contract system and potential irregularities in its stablecoin USD1, will be heard in open court.

Sun has claimed to have spent $45 million on WLFI tokens and is critical of the company's alleged ability to freeze or burn them at will. He also questioned whether World Liberty has sufficient capital to settle any legal claims against it.

Meanwhile, Hunter Biden, an investigator into the crypto sector, has separately accused WLFI of raising $75 million by leveraging its own tokens and using Sun's investment as collateral.