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Judge keeps Justin Sun's World Liberty claims in public court
The ruling declined a request to send the dispute entirely to private arbitration, and the judge ordered the parties to sort which claims stay in court versus go to an arbitrator.
A federal judge in San Francisco kept TRON founder Justin Sun's individual claims against World Liberty Financial in open court, rejecting the crypto venture's request to route the entire fight into private arbitration, according to The Defiant. The decision means some parts of the case remain visible on the public district court docket, while contractual arbitration proceedings governed by the American Arbitration Association rules would be confidential.
The dispute centers on World Liberty's so-called blacklist function added to a WLFI contract in August 2025, which the parties tied to a freeze of 600 million tokens that Sun had been cleared to trade. Sun said the judge ruled that all of his individual claims would remain in open court, while also rejecting World Liberty's view that every claim filed by his two corporate plaintiffs must be arbitrated.
The Defiant reports the judge directed the parties to negotiate which of the corporate plaintiffs' claims would be handled in arbitration versus kept in the district court. A docket entry shows Judge James Donato set argument on World Liberty's arbitration motion for 11 a.m. in Courtroom 11 of the Northern District of California, with two transcript orders filed the same day, and no written order had been entered as of the latest docket update cited by the outlet.
World Liberty's motion, filed June 2 by Quinn Emanuel Urquhart & Sullivan partners James Judah and William Burck, asked the court to compel Blue Anthem Limited and Black Anthem Limited to arbitrate, and to stay any claims brought by Yuchen (Justin) Sun if those claims were not dismissed. The companies cited arbitration clauses across multiple agreements, including advisor token and terms of sale documents, and World Liberty previously stated in a May 25 stipulation that the dispute with the entities should proceed in arbitration rather than in the U.S. district court.