A federal judge in San Francisco denied World Liberty Financial’s request to route Justin Sun’s individual claims into private arbitration, meaning his grievances will be heard in public court rather than confidential proceedings. The dispute centers on the blacklist function World Liberty added to the WLFI contract in August 2025, which was used days later to freeze the 600 million tokens Sun had been cleared to trade. Sun filed suit in April on seven counts including breach of contract, fraud in the inducement, and unjust enrichment. Separately, World Liberty sued Sun for defamation in Miami-Dade County circuit court on May 4.
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