Justin Sun Accuses World Liberty's USD1 of Having "Backdoor Functions"

Justin Sun said in a post on X that his legal team successfully opposed World Liberty Financial's attempt in California federal court to move their dispute into confidential arbitration and seal related filings. The judge ruled that all of Sun's personal claims would remain in open court.

Sun accused World Liberty of building "backdoor functions" into its USD1 stablecoin, giving the project the technical ability to freeze or destroy users' assets. He also questioned the solvency of World Liberty and USD1, arguing that the collateral backing USD1's reported market capitalization of approximately $4 billion belongs to users and cannot be used to satisfy his claims for hundreds of millions of dollars. Sun said he had seen no evidence that World Liberty holds sufficient capital, excluding those collateral assets, to cover potential judgments and other liabilities, and urged investors to exercise "extreme caution." World Liberty has not publicly responded to his latest remarks.

Justin Sun Accuses World Liberty's USD1 of Having "Backdoor Functions"

Justin Sun said in a post on X that his legal team successfully opposed World Liberty Financial's attempt in California federal court to move their dispute into confidential arbitration and seal related filings. The judge ruled that all of Sun's personal claims would remain in open court.

Sun accused World Liberty of building "backdoor functions" into its USD1 stablecoin, giving the project the technical ability to freeze or destroy users' assets. He also questioned the solvency of World Liberty and USD1, arguing that the collateral backing USD1's reported market capitalization of approximately $4 billion belongs to users and cannot be used to satisfy his claims for hundreds of millions of dollars. Sun said he had seen no evidence that World Liberty holds sufficient capital, excluding those collateral assets, to cover potential judgments and other liabilities, and urged investors to exercise "extreme caution." World Liberty has not publicly responded to his latest remarks.

Source:https://twitter.com/wublockchain/status/2090994702875238673