World

Dough

Liberty

<ul>
 <li>Justin Sun alleges USD1 contracts can freeze or destroy user assets, but World Liberty has not publicly responded to the claims.</li>
 <li>The judge rejected World Liberty’s attempt to move Sun’s individual claims into confidential arbitration during the August 20 hearing.</li>
 <li>Sun questions World Liberty’s finances, citing reported USD1 collateral and loans backed by WLFI tokens on Dolomite.</li>
</ul>
<p>Justin Sun <a href="https://x.com/justinsuntron/status/2090535890749915282?s=20" rel="noopener noreferrer nofollow">said</a> a California federal judge rejected World Liberty Financial’s effort to move their dispute into confidential arbitration. Sun said the August 20 hearing kept his individual claims in public court, while the judge ordered both sides to negotiate which company-related claims belong in arbitration and whether related filings remain public.</p>
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<h2 class="wp-block-heading" id="strong-sun-challenges-usd1-controls-strong"><strong>Sun Challenges USD1 Controls</strong></h2>
<p>Sun accused World Liberty of adding backdoor functions to its USD1 stablecoin. He said the functions could let the project freeze or destroy user assets. The claims follow Sun’s allegations involving WLFI tokens.&nbsp;</p>
<p>He said he invested $45 million and alleged World Liberty used contract controls to freeze, restrict, or destroy his tokens. <a href="https://cryptofrontnews.com/binance-restricts-htx-transfers-as-justin-sun-clarifies-scope/" rel="noopener noreferrer nofollow">Sun</a> said the court barred World Liberty from destroying, impairing, reallocating, or permanently disposing of his tokens. His lawsuit seeks hundreds of millions.</p>
<p>However, World Liberty has not publicly responded to his latest remarks. Sun said he has not seen evidence that World Liberty holds enough capital outside USD1 collateral to cover his claims.</p>
<h2 class="wp-block-heading" id="strong-sun-questions-world-liberty-finances-strong"><strong>Sun Questions World Liberty Finances</strong></h2>
<p>Sun said USD1’s reported market capitalization stands near $4 billion. He described that amount as user collateral backing the stablecoin. He argued those assets cannot satisfy court judgments tied to his claims.&nbsp;</p>
<p>He cited reports that World Liberty deposited about $5 billion of <a href="https://cryptofrontnews.com/htx-drops-usd1-as-wlfi-asset-freeze-dispute-deepens/" rel="noopener noreferrer nofollow">WLFI</a> tokens as collateral on Dolomite. According to those reports, World Liberty borrowed at least $75 million in stablecoins, including USD1.&nbsp;</p>
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<p>Sun noted that Dolomite’s co-founder is World Liberty’s chief technology officer. He compared the reported lending structure with leveraged arrangements linked to Sam Bankman-Fried’s FTX fraud.</p>
<h2 class="wp-block-heading" id="strong-sun-raises-dough-finance-concerns-strong"><strong>Sun Raises Dough Finance Concerns</strong></h2>
<p>Sun also referenced <a href="https://cryptofrontnews.com/trump-backed-world-liberty-ties-to-chinese-ai-platform/" rel="noopener noreferrer nofollow">World Liberty</a> co-founder Chase Herro and his previous involvement with Dough Finance. Investors sued over a reported hack involving assets allegedly moved into Herro’s wallet.</p>
<p>Public reports said many Dough Finance participants later became involved with World Liberty. Sun also referenced his earlier dispute with ARIA over about $500 million in TUSD collateral.</p>
<p>He said ARIA agent Vincent Chok later launched FDUSD through First Digital Trust. Sun cited FDUSD’s later depeg and Binance delistings while urging investors to conduct due diligence.</p>
<p>The post <a href="https://cryptofrontnews.com/justin-sun-claims-world-liberty-gave-usd1-backdoor-functions/" rel="noopener noreferrer nofollow">Justin Sun Claims World Liberty Gave USD1 Backdoor Functions</a> appears on <a href="https://cryptofrontnews.com" rel="noopener noreferrer nofollow">Crypto Front News</a>. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.</p>

Justin Sun Claims World Liberty Gave USD1 Backdoor Functions

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