- Claims filed individually by Justin Sun against World Liberty will remain in the federal court after the August 20 hearing.
- Negotiation on where the claims from the company owned by Sun will be resolved is required.
Justin Sun secured a partial procedural victory in his legal battle against World Liberty Financial on August 20. A California federal judge apparently decided to allow Sun’s personal claims to proceed in court. This came after World Liberty had filed a motion to transfer the lawsuit to arbitration and put the federal proceedings on hold. Instead of granting their motion, Judge Donato ordered the two parties to engage in discussions about the corporate claims that would be tried in court. The judge’s decision did not resolve the issue of any fraudulent behavior, defamation, or contract breach by either party.
Individual Claims of Sun Stay in Federal Court
Sun claimed that the court did not accept World Liberty’s motion to send all the claims for arbitration. In the case, Blue Anthem Ltd and Black Anthem Ltd were also part plaintiffs along with Sun, filing the case against World Liberty in California.
Sun invested $45 million in the early token sales by World Liberty, as per the complaints made by Sun. Sun filed a lawsuit against the company after World Liberty put restrictions on his WLFI tokens. Sun is claiming that World Liberty froze, restricted, or burned tokens using smart contract controls.
Neither court has issued any decision regarding these conflicting claims and misconduct by either side. World Liberty has also asked the court to compel arbitration, but the judge has not issued a decision following the August 20 hearing. Sun’s individual claims will continue in federal court, while the court has yet to decide the claims involving his companies.
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