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[SITUATION] · [QUIET] · [BUSINESS]

2 clusters · 17 sources · 3 days · First seen 22 days ago · Last updated 20 days ago

Justin Sun lawsuit against World Liberty Financial

Overview

Justin Sun, the founder of TRON, filed a lawsuit against World Liberty Financial (WLF) alleging the company utilized a smart contract ‘backdoor’ to freeze, restrict, or burn his $WLFI tokens. Sun, an early investor who contributed $45 million, also raised concerns regarding administrative controls within the USD1 stablecoin that could allow operators to move funds without user consent.

In a California federal court, Sun secured a procedural victory when U.S. District Judge James Donato rejected WLF’s attempt to move the entire dispute into private, confidential arbitration. While the court has ordered both parties to negotiate which specific corporate claims might move to arbitration, Sun’s individual claims will proceed in open court.

WLF co-founder Zach Witkoff has disputed Sun’s characterization of the proceedings, claiming Sun’s statements are ‘riddled with falsehoods.’ The ruling does not resolve the core allegations of fraud or misconduct.

Entities

Justin Sun · World Liberty Financial · USD1 · James Donato · US District Court for the Northern District of California

Timeline

20 days ago

[BUSINESS] 5 sources
Justin Sun sues World Liberty Financial over alleged smart contract backdoor
TRON founder Justin Sun is suing World Liberty Financial, alleging a smart contract backdoor allows the company to unilaterally freeze or burn tokens, including his own $45 million investment.
22 days ago

[BUSINESS] 14 sources
Justin Sun wins procedural victory in World Liberty Financial lawsuit
A California federal judge ruled that Justin Sun’s individual claims against World Liberty Financial will remain in public court, rejecting an attempt to move the dispute into private arbitration.

Sources

ambcrypto.com · bitcoinethereumnews.com · bitcoinsistemi.com · blockonomi.com · blockzeit.com · coin-turk.com · coingape.com · coinpedia.org · crypto.news · cryptobriefing.com · cryptonomist.ch · cryptopolitan.com · cryptoslate.com · en.bitcoinsistemi.com · mycryptoparadise.com · therogueginger.com · tronweekly.com