Justin Sun Seeks Sanctions Against World Liberty Financial, Saying It Disclosed UAE Ties Months Late
San Francisco, California — Lawyers for TRON founder Justin Sun filed a motion on the night of November 2 in the US District Court for the Northern District of California seeking sanctions against World Liberty Financial, the Trump family-backed cryptocurrency venture, and its attorneys, saying the company disclosed only months into the litigation that its ownership chain extends to the United Arab Emirates. Sun announced the filing on X on November 3; a sanctions hearing is scheduled for December 10 before Judge James Donato.
The motion says World Liberty's first corporate disclosure, filed June 2, listed only the company itself with citizenship solely in Florida, while an amended filing on August 26 identified 22 individuals and entities in its ownership chain, with citizenship extending to Delaware, Puerto Rico and the UAE. Sun's side asks for $263,821.20, the legal fees and costs it says it incurred opposing the company's arbitration motion, and Sun says he will refile the case in California state court once the sanctions motion is decided.
The dispute began on April 21, when Sun and two affiliated companies sued World Liberty Financial, alleging it fraudulently induced him to invest $45 million in WLFI tokens under a November 2024 agreement before improperly freezing about 2.9 billion tokens in his wallet and restricting his governance rights. World Liberty has called the freeze a routine security step, and the company sued Sun for defamation in Florida in May. The case is Sun et al. v. World Liberty Financial LLC, No. 3:26-cv-03360.
Source: Justin Sun
Published by GSM · USA (original Chinese edition)
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