Justin Sun Seeks Sanctions Against World Liberty Financial Over UAE Ties

Highlights:

• Justin Sun seeks court sanctions against World Liberty Financial over its late disclosure of UAE ownership ties.
• Sun accuses World Liberty of submitting incomplete ownership details after suing the company over frozen WLFI tokens.
• Sun plans to refile his lawsuit in California state court after the federal judge decides his motion.

Tron founder Justin Sun has asked a US federal court to sanction World Liberty Financial and its lawyers over a late disclosure of the crypto firm’s ties to the United Arab Emirates (UAE). Sun says the company revealed those ties months after he sued it over frozen WLFI tokens.

In a November 4 post on X, Sun said his lawyers had filed the sanctions motion the previous night. He accused World Liberty of submitting an incomplete ownership statement and then using its revised disclosure to challenge the court’s authority to hear the case. The court has not ruled on his allegations.

BREAKING: Justin Sun is moving to sanction World Liberty Financial, alleging the project hid its UAE citizenship to escape his $45M fraud suit.

Its ownership disclosure flipped from one Florida owner to 22 across four jurisdictions, days after a judge signalled his case could… pic.twitter.com/VEmEH4x9Bz

— CryptoSavingExpert ® (@CryptoSavingExp) November 4, 2026

Sun Questions World Liberty’s Updated Ownership Disclosure

Sun invested $30 million in WLFI tokens in November 2024. He later raised his total investment to $45 million, becoming one of the project’s early major backers.

On April 21, 2026, Sun sued World Liberty Financial in California federal court. He accused the Trump-linked crypto project of misleading him into investing and unlawfully freezing his tokens. World Liberty then sought to move the dispute into private arbitration, which would take parts of the case outside public court proceedings. 

Sun opposed that request. At an August 20 hearing, the judge indicated that not all of Sun’s claims should go to arbitration. The parties were asked to work out which claims would remain in court.

Six days later, on August 26, World Liberty submitted an updated ownership disclosure. According to Sun, its original statement identified only the company itself and listed Florida as its citizenship. The revised filing identified 22 members in its ownership chain, with links to Florida, Delaware, Puerto Rico, and the UAE. Sun questioned why the company had not provided those details earlier. He said his lawyers had already spent months and hundreds of thousands of dollars opposing arbitration.

UAE Ties Raise Questions Over Federal Court Jurisdiction

The ownership update has become central to the dispute because US federal courts have limits on cases involving foreign parties. For certain lawsuits, the court must have jurisdiction based on the citizenship of those involved.

Sun argues that World Liberty’s UAE citizenship puts foreign parties on both sides of his case. World Liberty now says the federal court lacks jurisdiction, according to Sun. He also criticized the company’s public claims about its American identity. Sun pointed to its promotional material, which describes World Liberty as a US-based business committed to bringing decentralized finance back to America.

Sun said World Liberty’s lawyers claimed they learned about the UAE ties only after filing the first statement. He argued that either the company withheld information or its lawyers failed to check ownership properly. Those accusations remain unproven.

Sun Plans to Refile Lawsuit in California State Court

Sun wants the court to hold World Liberty and its lawyers responsible for what he considers a misleading disclosure. He also wants the company, rather than his legal team, to bear the costs tied to the dispute. “Token holders have a right to know whether the projects they invest in are telling the truth to the public and to the courts,” Sun wrote.

He said he plans to refile his lawsuit in California state court after the federal judge decides the sanctions motion. World Liberty has also sued Sun over defamation claims amid their ongoing legal dispute.