Justin Sun seeks sanctions against World Liberty Financial
Key points
- Justin Sun has filed a sanctions motion against World Liberty Financial over its alleged delayed disclosure of UAE ownership ties.
- The dispute involves Sun's $45 million investment in WLFI tokens and the company's amended disclosure identifying 22 ownership-chain members.
- The dispute could shift Sun's lawsuit from federal court to California state court.
Justin Sun is seeking sanctions against World Liberty Financial over its alleged delayed disclosure of UAE ownership ties.
The company initially listed Florida as its sole citizenship before identifying 22 ownership-chain members across four jurisdictions.
“World Liberty was proudly American when it was selling tokens,” TRON founder Justin Sun wrote on X.
The amended disclosure listed Florida, Delaware, Puerto Rico and the United Arab Emirates, raising questions about federal court jurisdiction.
Sun alleges the company withheld ownership information until months into litigation, after his legal team challenged its arbitration request.
The dispute stems from Sun's $45 million investment in World Liberty Financial's WLFI token (WLFI), whose holdings he says were unlawfully frozen.
World Liberty previously countersued Sun, describing his allegations as a “meritless PR stunt” against the Trump-family-backed cryptocurrency project.
The court has yet to determine whether sanctions are warranted or whether Sun's underlying allegations have merit.
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