Update on the Justin Sun vs World Liberty Financial case: Sun stated that the U.S. federal court in California ruled that

  • ✅ His personal demands still remain in open court, publicly

  • ✅ WLFI cannot send all issues to arbitration

  • ✅ As for the company’s claims, they still need to be negotiated as to what is in court and what goes to arbitration

Sun believes this is a Significant Win, because the most important parts of the case are still being examined in public court 👀

📌 Quick recap of the same old story

Justin Sun is one of WLFI’s earliest and largest investors. He invested around $45 million to receive $WLFI. Later, he sued, alleging that WLFI had smart contract capabilities that could

  • 🔒 Freeze

  • 🚫 Restrict

  • 🔥 Burn Token

The holder’s ownership is unilaterally controlled by that party, and they claim that this power was used on his tokens. Previously, Sun also received a temporary court order preventing WLFI from Burning, Destroying, or Reallocating his tokens during the case

Currently, he is seeking damages in the hundreds of millions of dollars

🔥 Sun also expanded his concerns about USD1 stablecoin

  • By asking, if the issuer still has the power to Freeze or destroy assets, users should clearly understand the risks related to Ownership and Centralized Control

  • In addition, Sun also questioned WLFI’s financial status after reports said the project placed approximately $5 billion worth of $WLFI as collateral on Dolomite and borrowed out stablecoins of at least around $75 million

  • Even if $1 has a market cap of around $4B, Sun pointed out that this portion is collateral of stablecoin holders, not money the company can directly use to pay damages

💡 For me, the major issue in this case is that Justin Sun is pushing an important question for the entire DeFi world to be examined in Open Court

If the token is in our wallet, but someone else can still Freeze or Burn it… in the end, who is the true owner of the asset?

Right now, it’s considered that Justin Sun scored an important win in the first round, but the case is not over yet, and the various allegations still need to be proven further in court, sir ⚖️

#TRON #TGF #JustinSun #WLFI #USD1 #DeFi