Justin Sun asked a court to sanction Trump-linked World Liberty Financial, which he is suing over the freezing of his tokens, alleging that it disclosed its ownership information late.
According to The Block, Tron founder Sun announced on November 3 that he had filed a new motion against World Liberty Financial (WLFI). Sun alleges that the company disclosed its connection to the United Arab Emirates (UAE) months after the legal dispute began, in an attempt to challenge the case being heard in federal court.
Sun, who said he had invested $45 million in WLFI tokens, accused the company of fraud and unlawfully freezing his tokens in a lawsuit he filed in April. The latest motion adds court disclosures about the company’s ownership structure to the dispute.
First filing listed one entity; later filing listed 22 members
According to Sun, in its first disclosure to the court, World Liberty listed only one entity in its ownership chain and reported its legal citizenship as Florida only. A later filing listed 22 members in the ownership chain and identified ties to Florida, Delaware, Puerto Rico, and the UAE.
Sun argued that the company highlighted its American identity when selling tokens, but raised its UAE connection while seeking a way out of federal court. He based his request for sanctions on the late disclosure of this information.
Case could move to California
The dispute could affect which court hears the case. According to Sun’s legal argument, the parties’ citizenship is important in determining whether the federal court has jurisdiction over the case; World Liberty’s ownership structure and its UAE connection also call that jurisdiction into question.
Sun said he plans to refile the case in California state court after the sanctions motion is decided. World Liberty sued Sun in May, alleging that after his tokens were frozen, he conducted an unfounded public relations campaign against the project.
WLFI far below its peak
The project associated with the Trump family emerged in October 2024. According to price data cited in the report, WLFI is trading at around $0.051, compared with its peak of approximately $0.33. These levels represent a decline of about 85% from the peak. The token’s fully diluted valuation is approximately $5.1 billion.
Not investment advice.