- Justin Sun’s dispute with WLFI has moved into open court.
- Recently, the TRON founder accused the project of a hidden token-locking mechanism and secured an open hearing.
- He called the decision “a significant victory.”
TRON founder Justin Sun said a federal court in California rejected World Liberty Financial’s (WLFI) attempt to move their dispute into closed arbitration and allowed his personal claims to proceed in open court.
今天，我的律师团队出席了加州联邦法院的听证，反对世界自由金融（World Liberty Financial）@worldlibertyfi 试图将我们的争议强行推入秘密仲裁程序、并将文件封存于公众视野之外的做法。
— H.E. Justin Sun
我们据理力争，主张本案应在公开法庭审理——法院支持了我们的立场。
这是一场重大胜利：…(@justinsuntron) August 20, 2026
According to Sun, the court also rejected WLFI’s position on sending all corporate claims to arbitration and instructed the parties to determine which claims will be heard in court and which will go to arbitration.
Sun Accuses WLFI of a Hidden Token-Locking Mechanism
The dispute centers on Sun’s investment in the WLFI token. He says he was one of World Liberty Financial’s earliest and largest investors and put $45 million into the project, after which token sales, Sun claims, rose to $550 million.
Recall that his initial investment in the crypto project linked to US President Donald Trump’s family amounted to $30 million in November 2024.
In his post, he reiterated earlier allegations against WLFI: the project team allegedly secretly added a mechanism to the WLFI smart contract that allows it to freeze, restrict, or destroy holders’ tokens without notice or due process.
Sun claims this mechanism was applied specifically to his assets, and his lawsuit seeks hundreds of millions of dollars in damages.
According to the entrepreneur, after filing the lawsuit, he obtained a court order barring World Liberty Financial from destroying, restricting, redistributing, or otherwise permanently disposing of his tokens.
“This is a major victory: the judge ruled that all of my individual claims will remain in the public courtroom for trial,” Sun wrote.
He also said that he later learned of a similar feature in the USD1 stablecoin issued by World Liberty Financial. In Sun’s view, this means the company technically has the ability to freeze or destroy users’ assets.
At the same time, these claims reflect Sun’s position and that of his side in the legal dispute, rather than facts established by the court.
Sun Questioned WLFI’s Financial Stability
Separately, the entrepreneur said he doubts World Liberty Financial’s ability to meet potential court-ordered obligations. He pointed to reports that the company allegedly posted about 5 billion of its own WLFI tokens as collateral on the Dolomite lending platform and may have raised at least $75 million in stablecoins against them, including USD1.
Sun also mentioned a previous project by WLFI co-founder Chase Herro — the Dough Finance DeFi protocol — which became the subject of a legal dispute after reports of users’ assets being stolen. Sun is using these circumstances as an argument in favor of tighter oversight of WLFI and USD1.
At the end of the statement, he urged investors to assess the risks for themselves and “remain extremely cautious.”
Previously, in April 2026, Sun reported that he had filed a lawsuit in a California federal court against World Liberty Financial over the freezing of tokens, the loss of voting rights, and threats to destroy them.
Сообщение Justin Sun Announced Procedural Victory Over World Liberty Financial in Court Dispute появились сначала на INCRYPTED.