Sun Yuchen achieves partial victory in the World Liberty lawsuit
2026-08-21 16:38:20
According to CoinMeta, Sun Yuchen achieved a partial procedural victory on August 20 in the lawsuit against World Liberty Financial. Judge James Donato of the California Federal Court ruled that Sun's personal claims would continue to be heard in open court, while World Liberty's request to transfer all company-related claims to arbitration was denied. The court instructed both parties to negotiate which claims filed by Sun Yuchen's company should remain in court, with the possibility that other claims may still be referred to private arbitration. World Liberty submitted a motion in June seeking mandatory arbitration and a suspension of the federal case. After the hearing, Sun stated, "All of my personal claims will continue to proceed in open court." He called this decision a victory for public access to the dispute. Sun invested $45 million in World Liberty and filed a lawsuit because the tokens held by WLFI were frozen. The complaint alleged that World Liberty used administrative controls within the WLFI smart contract to freeze Sun's tokens and restrict his governance rights. World Liberty denied any improper conduct and stated that its token sales documents authorized such restrictions under certain circumstances.
Source:Cryptonews
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