Justin Sun Asks Court to Sanction World Liberty Over Late Disclosure of UAE Ownership

Tron founder Justin Sun and two co-plaintiffs have asked a federal court to penalize World Liberty Financial and its attorneys, claiming the Trump family-linked company gave a misleading account of who owns it. The requested amount is $263,821.20. The dispute centers on Sun’s $45 million WLFI token investment. Sun says the firm first named Florida as its only citizenship, then, nearly three months later, corrected the record to list 22 people and entities in its ownership chain, some based in the United Arab Emirates. He argues the company must have known its owners all along and refused to explain the gap. World Liberty did not respond to a request for comment.

Why the Disclosure Changed the Court Fight

The corrected filing came six days after a federal judge questioned World Liberty’s push to send Sun’s claims to arbitration. Its lawyers then argued that UAE citizenship stripped the federal court of jurisdiction, since foreign parties sat on both sides. In an Aug. 26 email, attorney Sam Cleveland said the team had only recently learned of the extra details, while maintaining the company already held UAE citizenship when the suit began. According to a sworn declaration from Sun’s lawyer Edward Moss, the sanctions figure covers the work of four attorneys opposing arbitration and leaves out other fees and discovery costs.

Background to the Sun and World Liberty Legal Battle

Sun sued in April, alleging fraud and the unlawful freezing of his tokens. World Liberty answered in May with a defamation suit, citing false statements and breaches of token sale terms, which Sun denies. The conflict follows a January 2025 deal in which an Abu Dhabi-backed vehicle agreed to buy a 49% stake in the company for $500 million. Sun was once a supporter of the Trump family’s crypto ventures, investing in World Liberty and buying the TRUMP memecoin, which put him atop the leaderboard for a May 2025 dinner with the president.

Sun plans to refile in California state court once the sanctions motion is settled. A hearing is set for Dec. 10.