Sun Yuchen said his lawyers recently appeared in federal court in California to oppose World Liberty Financial’s bid to force the parties’ dispute into confidential arbitration and to seal related filings. According to Sun, the court ruled that all of his personal claims will remain in open court. It also declined to send all company-related claims to arbitration as a blanket matter, instead directing both sides to work out which claims should stay before the court and which should proceed to arbitration. Sun described the ruling as a major win and said token holders deserve to know how a project treats those who placed trust in it. He said he was among World Liberty’s earliest and largest investors, having invested $45 million to acquire WLFI tokens. In the complaint, he alleges that after his investment helped token sales raise about $550 million, the project secretly built backdoor functions into the smart contract that could unilaterally freeze, restrict, or destroy holders’ tokens, and then used those powers to improperly withhold his tokens while threatening criminal complaints when he tried to defend his rights. He said damages sought in the lawsuit amount to hundreds of millions of dollars. Sun also raised concerns about similar powers in the project’s USD1 stablecoin, WLFI collateral posted on Dolomite, and public information related to litigation involving a co-founder and Dough Finance. These statements and allegations are solely Sun’s account.

Crypto payments firm RedotPay has put its planned U.S. initial public offering on hold, according to CoinDesk, which cited Bloomberg. The IPO had been expected to raise more than $1 billion and value the company at as much as $4 billion when details first surfaced in February. The process is now not expected to move ahead until 2027 at the earliest. The pause comes after a Binance affiliate filed a $472.8 million lawsuit in Hong Kong against three RedotPay co-founders in early August. Binance alleged that more than 470,000 paying users were diverted from the Binance Card product to a competing RedotPay offering. The complaint also said the two sides signed a commercial agreement in March 2025 that gave RedotPay access to Binance’s user base, and that Binance later found in March 2026 that Binance Pay balances had flowed into top-ups for RedotPay’s own card without being segregated. RedotPay did not directly confirm that the IPO had been delayed or say why. A spokesperson said the company remains focused on global regulatory compliance and business growth, adding that it had obtained a U.S. money transmitter license this week.

Baltimore and Mayor Brendan Scott have sued Kalshi and Polymarket, claiming the prediction market operators run "illegal, unlicensed sports betting platforms" and violate local gambling laws and deceptive business practice rules. The mayor's office said Thursday that both companies misled users about the legality and regulatory status of their offerings. Baltimore's complaint contends that Kalshi and Polymarket present event contracts as trading when the transactions are actually a form of gambling prohibited under state law. The lawsuit against Kalshi also names Robinhood, Webull, and Coinbase as partners on its prediction market platform, saying they advertised sports contracts as lawful products for Maryland users. The case also tests regulatory boundaries: the Commodity Futures Trading Commission (CFTC) and the companies involved argue that prediction market event contracts are "swaps" within the CFTC's jurisdiction. Polymarket, in turn, says prediction markets operating on CFTC-registered exchanges fall under federal law and should not be subject to state or local rules.

Zerohash's application for a US trust bank charter has been returned by the Office of the Comptroller of the Currency (OCC), with records showing the move on July 17. The crypto infrastructure firm, which serves Morgan Stanley and E*Trade, called the return an administrative step rather than a substantive denial. It plans to refile this month with a phased approach centered on gaining approval for national trust activities. Already operating as a state-level trust bank, Zerohash counts BlackRock, Franklin Templeton and Stripe among its clients, and was valued at more than $1.5 billion in a prior fundraising round. The company is also facing a lawsuit from its former chief compliance officer, who claims he was dismissed after flagging more than 200 compliance gaps; an attempt by Zerohash to push the dispute into arbitration was initially rejected.

FlightAware, a company that specializes in flight data, has withdrawn its lawsuit against Kalshi, the prediction market platform, just one day after filing the case. In the now-dropped suit, FlightAware had accused Kalshi of using its flight data and trademarks without authorization to support betting markets tied to flight cancellations. The withdrawal does not prevent FlightAware from refiling the case in the future. The case unfolded while Kalshi's aviation-related contracts were drawing criticism on social media, with some users raising concerns that the markets could create incentives for malicious interference with flights. At the same time, retail participation in those contracts has been relatively low. Neither company has offered a public comment about the lawsuit. The case had raised a broader question about whether prediction markets can use third-party data and trademarks without a commercial agreement. In addition, Kalshi is facing other regulatory and legal challenges in several states. CoinDesk reported the case.

FlightAware, a flight tracking company, has initiated legal action against Kalshi, a prediction market platform, in a New York federal court. The lawsuit claims that Kalshi, without authorization, used FlightAware's flight data and trademark to build and operate a market for betting on airline flight cancellations. According to the complaint, Kalshi breached the terms of its license from FlightAware. It allegedly continued to use the data to settle contracts even after it received a cease-and-desist notice. Although Kalshi added a disclaimer stating that its market is not endorsed by FlightAware, the platform kept citing FlightAware's data. Separately, Kalshi is also facing other lawsuits brought by the states of New York, Wisconsin and Nevada, which accuse it of running gambling operations without a license. CoinDesk reported the lawsuit.

Crypto.com is facing pressure on several fronts after a proposed multi-billion-dollar public-market vehicle tied to CRO was scrapped, cardholder rewards were reduced, and several senior executives left the company in recent months. According to Protos, the abandoned deal involved Crypto.com, Trump Media’s publicly traded DJT, and another public company that had changed its ticker to MCGA, short for a slogan echoing Trump’s MAGA branding. The venture had been pitched as the first and largest publicly traded CRO treasury company, but the plan was terminated over the weekend along with a separate arrangement under which Crypto.com would have serviced ETFs for Yorkville America. The pullback comes as Crypto.com also trims benefits for users who locked up CRO to qualify for card perks. From October 1, Ruby card cashback falls from 2% to 1.5% and the monthly spending cap drops from $1,250 to $750, while Icy White holders lose unlimited 4% cashback and move to 3.5% capped at $3,000 in spend. Staking rewards tied to those card programs are also set to fall on September 10. Protos also noted April, June, and July executive departures, a March workforce reduction of about 180 jobs, and a temporary halt to crypto deposits and withdrawals on August 2. At the time cited by the report, CRO traded near $0.047.

According to Bloomberg, three Binance-linked entities—Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore—have initiated legal action in Hong Kong against RedotPay's co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. The lawsuit accuses the trio of breaching agreements by funneling more than 470,000 users away from Binance Card to RedotPay, with claimed losses of $472.8 million. Binance says it discovered since March 2026 that RedotPay allowed Binance Pay funds to top up RedotPay cards without proper segregation, allegedly obtaining $304 million in user funds. RedotPay responded that it will actively defend against all allegations, stating operations remain unaffected. Additionally, Chaintecs has filed another suit against RedotPay affiliates in Singapore, with a hearing set for Friday. RedotPay, which previously pursued an IPO at roughly $4 billion valuation, now reports $14 billion in annualized payment volume, $180 million annualized revenue, and more than 8 million users.