Justin Sun accuses World Liberty Financial's USD1 of having backdoor functions, files fraud lawsuit

Justin Sun accuses World Liberty Financial's USD1 of having backdoor functions, files fraud lawsuit

Justin Sun sued World Liberty Financial in April 2026, claiming the venture froze his $75M holdings after declining $200M USD1 stablecoin investment. The case exposes unilateral asset-freeze risk in DeFi governance tokens, raising solvency and custody concerns for institutional capital entering crypto infrastructure.