A California federal judge has rejected World Liberty Financial’s push to move its legal fight with Justin Sun behind closed doors, meaning Sun’s claims will play out in open court. Sun, who says he invested $45 million in the project, argues that World Liberty embedded undisclosed control features inside WLFI token contracts, tools that could let the company freeze, restrict, or even burn tokens at will. He also claims similar powers exist in World Liberty’s stablecoin, USD1.
That matters because the case turns on how much control World Liberty may have kept over assets that investors believed they owned under normal token-holder rules. And with the lawsuit moving forward in federal court, the next phase could force contracts, internal messages, and other records into the open, giving the public a clearer look at whether the controls Sun describes existed and whether they were disclosed. For now, the judge has not ruled on whether Sun’s allegations are true. But this fight over control, disclosure, and token-holder expectations will now be tested in public view.