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Justin Sun's Legal Action Against World Liberty Financial Moves Forward

21 Aug 2026· CLOM Newsroom· CLOM· 1 min readWLFIRUMOR

Justin Sun has initiated legal proceedings against World Liberty Financial ($WLFI), with a California federal judge ruling that his individual claims will proceed in open court rather than secret arbitration.

Sun alleges that after investing $45 million in $WLFI, the project employed a smart-contract backdoor to freeze, restrict, or burn his tokens, and he is seeking hundreds of millions in damages. The case raises concerns about $WLFI's token controls and financial stability.

Reporting aggregated and summarized by CLOM — research & education, not financial advice.

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