Cryptoupdated 46m ago2 min read
Justin Sun Seeks $263,821.20 Sanctions Against World Liberty Financial Over UAE Ownership Disclosure
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Sun seeks about $263,821 in sanctions against World Liberty Financial and its lawyers. WLFI allegedly withheld UAE ownership/citizenship disclosure for months in the lawsuit.
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Sanctions Over UAE Disclosure
Tron founder Justin Sun sought $263,821.20 in sanctions against World Liberty Financial and its lawyers over what he said was a misleading court disclosure about World Liberty’s ownership, in a dispute tied to his $45 million WLFI token investment.
Sun alleged that World Liberty initially listed Florida as its sole citizenship before amending its disclosure nearly three months later to identify 22 individuals and entities in its ownership chain, including those in the United Arab Emirates.
Sun said, “World Liberty presumably always knew who its owners were,” and he added, “When we asked how this happened, World Liberty refused to tell us.”
Sun said he plans to refile his token-freeze lawsuit in California state court after the sanctions motion is resolved, and a hearing was set for Dec. 10.
Arbitration Fight and Jurisdiction
World Liberty’s lawyers argued that the company’s UAE citizenship deprived the federal court of jurisdiction because foreign parties were on both sides of the lawsuit, as Sun’s sanctions motion added a jurisdictional dispute to an ongoing fight over frozen WLFI tokens. Cointelegraph said the amended disclosure came six days after a federal judge questioned World Liberty’s bid to move Sun’s claims into arbitration, and Sun’s filing tied the timing to the legal expenses incurred during that procedural battle.
Sun’s motion also described the sanctions request as covering fees for four attorneys’ work opposing arbitration, while it excluded other lawyers’ fees and costs related to jurisdictional discovery and the sanctions motion. A separate report said World Liberty amended its filing on August 26, adding 22 entities and citizenship in Florida, Delaware, Puerto Rico and the United Arab Emirates, and it said Sun sought sanctions after that change months into litigation.
What Comes Next
Sun’s underlying lawsuit accused World Liberty of fraud and the unlawful freezing of his tokens, and World Liberty responded by filing a defamation lawsuit against Sun in May alleging false statements and violations of token-sale terms.
Cointelegraph reported that World Liberty Financial did not immediately respond to a request for comment on the sanctions allegations, while Sun said he would keep pursuing his claims in California state court once the federal court resolves the sanctions request.
Sun’s filings and public statements framed the dispute around disclosure obligations and nationality, and TradingView quoted Sun saying, “World Liberty presumably always knew who its owners were.”
TradingView also reported that Sun’s motion sought $263,821.20 and that the hearing was scheduled for Dec. 10, placing the next procedural step in the sanctions case on the calendar.