BlockBeats News, August 21st, Justin Sun announced on social media that his legal team recently attended a hearing at the United States California Federal Court, opposing World Liberty Financial's (WLFI) attempt to move their dispute to a confidential arbitration and seal the documents from public view. The court supported his position, ruling that all his personal claims will continue to be heard in open court. At the same time, the court rejected World Liberty's request for all company-related claims to be submitted to arbitration and requested both parties to negotiate which claims will remain in court and which will enter arbitration. This ruling was a "major victory" and he stated that token holders have the right to know how the project team is handling investor rights.

Justin Sun stated that he was one of the earliest and largest investors in World Liberty, having invested $45 million to purchase WLFI tokens. He accused World Liberty of implanting a backdoor in the WLFI smart contract after his investment helped WLFI raise about $550 million, allowing the project team to unilaterally freeze, restrict, or burn holders' tokens. World Liberty has taken actions against his WLFI tokens and threatened criminal prosecution when he sought legal redress. The amount of claims currently filed against World Liberty has reached hundreds of millions of dollars.

In addition, Justin Sun mentioned that he learned that World Liberty also has similar functions in the USD1 stablecoin and warned users to be cautious of asset freeze or burn permissions. Justin Sun also raised concerns about World Liberty's financial situation and business arrangements, stating that public information shows that World Liberty deposited about 5 billion WLFI tokens into the lending platform Dolomite as collateral and loaned out at least $75 million in stablecoins, including USD1. He believes that these arrangements may pose risks.