TLDR
- Justin Sun filed a motion seeking sanctions against World Liberty Financial and its lawyers.
- He says the company listed only Florida as its home until months into his lawsuit.
- A later filing named 22 entities and citizenship in Florida, Delaware, Puerto Rico and the UAE.
- World Liberty now argues the federal court lacks jurisdiction, and Sun plans to refile in California state court.
- The court has not found that World Liberty hid its ownership on purpose.
Tron founder Justin Sun said on Tuesday that he filed a motion asking a federal court to sanction World Liberty Financial and its lawyers. He accuses the Trump-linked crypto project of failing to disclose its ties to the United Arab Emirates until months into a legal fight over frozen WLFI tokens.
Last night, my lawyers moved to sanction World Liberty Financial @worldlibertyfi for failing to disclose, until months into my litigation against the company, that it is a citizen of the UAE 🇦🇪 . #WLFI #USD1
For those who are new to this dispute, I was one of World Liberty’s…
— H.E. Justin Sun 👨🚀 🌞 (@justinsuntron) November 3, 2026
Sun sued the company in April. He says he invested $45 million in WLFI tokens and that World Liberty froze them after persuading him to buy through fraud.
How the Citizenship Filing Changed
In its first disclosure to a California federal court, World Liberty listed one entity in its ownership chain. It named Florida as its only citizenship, according to Sun.
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 signaled his case… pic.twitter.com/b2cvWx8hPA
— Coinvo (@Coinvo) November 4, 2026
The company also asked in April to move the dispute into private arbitration. Sun opposed that request.
At an August hearing, the judge ruled that some of Sun’s claims could stay in public court. Other claims were sent to arbitration.
Less than a week later, World Liberty amended its disclosure. It listed 22 entities in its ownership chain and claimed citizenship in Florida, Delaware, Puerto Rico and the UAE, Sun said.
Why It Matters for Jurisdiction
Federal courts generally cannot hear this kind of case when foreign citizens sit on both sides. This is known as diversity jurisdiction. For these purposes, a company takes on the citizenship of its owners.
Sun is a foreign citizen, so World Liberty’s UAE ties could stop the case from staying in federal court. World Liberty is now arguing that the court lacks jurisdiction.
Sun says the company should have shared its foreign ownership from the start. He says his lawyers spent months and hundreds of thousands of dollars fighting the arbitration request.
“World Liberty was proudly American when it was selling tokens,” Sun wrote on X. “It discovered its UAE roots only when it needed a way out of an American federal courtroom.”
According to Sun, World Liberty’s lawyers have said they learned of the UAE citizenship after the original disclosure was filed.
Background on the Investment
Sun was one of World Liberty’s earliest and largest investors. He agreed in November 2024 to buy $30 million worth of WLFI tokens. He later raised his total to $45 million.
World Liberty has close ties to President Donald Trump and his family. The company launched in October 2024.
The relationship later broke down. Sun alleges the company froze his tokens and blocked him from using assets he had bought.
World Liberty has defended its decision to freeze the tokens. In May, it countersued Sun and called his lawsuit a “meritless PR stunt.” The company could not be reached for comment on the latest claims.
Sun is asking the court to hold World Liberty and its lawyers accountable for what he calls a misleading filing. He says he plans to refile his lawsuit in California state court once the sanctions motion is resolved.
The allegations remain disputed. The court has not ruled that World Liberty intentionally hid its ownership.
The WLFI token reached an all-time high of about $0.33. It now trades near $0.051, which gives it a fully diluted valuation of about $5.1 billion.
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