Sun Yuchen: Successfully opposed the arbitration of USD1, questioning its solvency
2026-08-22 10:18:04
According to CoinMeta, Sun Yuchen posted on an X platform stating that his legal team successfully opposed World Liberty Financial's attempt to transfer the dispute between the two parties to confidential arbitration and to seal related documents in a federal court in California. The judge ruled that all of his personal claims would continue to be heard in open court. Sun Yuchen accused World Liberty of installing a "backdoor function" in the USD1 stablecoin it operates, giving the project party the technical capability to freeze or destroy users' assets. He also questioned the solvency of World Liberty and USD1, claiming that the collateral assets corresponding to USD1's reported market value of about $4 billion belong to users and cannot be used to pay for his claims of several hundred million dollars. In addition to these collateral assets, he has not seen evidence that World Liberty possesses sufficient capital to cover potential judgments and other debts. He reminded investors to remain "extremely cautious." World Liberty has not yet made a public response to his latest statements.
Source:X
This content is for market information only and does not constitute investment advice.
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