Yesterday’s arbitration motion hearing between Justin Sun and World Liberty Financial (WLFI) is being hotly contested by both the Tron billionaire and WLFI’s CEO Zach Witkoff.
The federal court hearing in California stems from Sun’s April lawsuit that accuses WLFI of fraud and breach of contract when it froze his tokens with alleged undisclosed blacklisting powers.
Sun says hearing was a ‘significant win’
Sun claimed on X that a judge ruled his case and “individual claims” would go to court, calling the apparent development a “major victory.”
He said that the judge “rejected World Liberty’s argument that all of the company-related claims should be arbitrated, and has ordered the parties to meet and confer about which of those claims should remain in court and which should go to arbitration.”
All this, Sun said, was despite WLFI’s efforts to force “secret arbitration proceedings.”
Witkoff says Sun is lying
Hours later, Witkoff said WLFI never wanted Sun’s “individual claims” to go to arbitration and that they wanted them dismissed entirely.
He said that the court is yet to rule on the outcome of these claims, completely contradicting Sun’s description of the hearing, which Witkoff described as “riddled with falsehoods.”
Read more: WLFI token falls 18% as governance vote branded a ‘scam’
Additionally, Witkoff claims the court sided with WLFI and agreed that many of Sun’s other claims must go to arbitration. He said, “Even Sun’s lawyers had to concede in the courtroom that these claims do not belong in court.”
Justin Sun is allegedly avoiding other lawsuit proceedings
To top it off, Witkoff alleges that Sun is “actively avoiding” legal proceedings regarding the separate lawsuit WLFI filed against him in Florida.
Court documents on the outcome of yesterday’s hearing are yet to be published online. It’s unclear when the parties will meet next to discuss the arbitration motion.
Sun says WLFI can’t afford to lose lawsuit
Sun also alleged that WLFI likely can’t afford the hundreds of millions of dollars in damages if they lose the lawsuit.
Read more: Trump’s World Liberty Financial sues its advisor Justin Sun
He highlighted that WLFI’s deposit of almost 5 billion WLFI tokens with Dolomite, and legal proceedings regarding Dough Finance litigation, raise doubts about whether WLFI has “enough money to satisfy a judgment, repay their debts, or make investors whole if there is a run on the bank.”
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