Justin Sun seeks $264K sanctions over World Liberty’s UAE disclosure

Sun plans to refile his token-freeze lawsuit in California state court after the sanctions motion is resolved. A hearing is set for Dec. 10.

Tron founder Justin Sun is seeking $263,821.20 in sanctions against World Liberty Financial and its lawyers, accusing the Trump family-linked crypto company of submitting a misleading court disclosure about its ownership in a legal dispute over his $45 million WLFI token investment.

In a federal court filing, Sun and two co-plaintiffs alleged that World Liberty initially listed Florida as its sole citizenship before amending its disclosure nearly three months later to identify 22 individuals and entities in its ownership chain, including those in the United Arab Emirates.

“World Liberty presumably always knew who its owners were,” Sun said. “When we asked how this happened, World Liberty refused to tell us.”

The amended disclosure came six days after a federal judge questioned World Liberty’s bid to move Sun’s claims into arbitration. World Liberty’s lawyers subsequently argued that the company’s UAE citizenship deprived the federal court of jurisdiction because foreign parties were on both sides of the lawsuit.

World Liberty Financial did not immediately respond to Cointelegraph’s request for comment.

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In April, Sun sued World Liberty, alleging fraud and the unlawful freezing of his tokens. World Liberty filed a defamation lawsuit against Sun in May, alleging false statements and violations of token-sale terms. Sun denied the allegations.

The legal back-and-forth followed a January 2025 agreement by an Abu Dhabi-backed investment vehicle to purchase a 49% stake in World Liberty for $500 million.

Sun previously backed the Trump family’s crypto ventures by investing in World Liberty and buying President Donald Trump’s TRUMP memecoin. He topped the token’s leaderboard for a May 2025 dinner with Trump, with holdings valued at about $18.5 million.

UAE ownership disclosure prompts jurisdiction dispute

In an Aug. 26 email included in the court exhibits, World Liberty’s lawyer Sam Cleveland said his team had “recently” learned of additional citizenship information. He maintained that World Liberty already had UAE citizenship when Sun filed the lawsuit in April.

Sun’s lawyers subsequently sought corporate records and testimony about World Liberty’s ownership and when its attorneys learned of the UAE connection. They allege that World Liberty provided limited documentation but declined to explain why its original disclosure omitted that information.

According to attorney Edward Moss’s sworn declaration, the $263,821.20 request covers fees for four attorneys’ work opposing arbitration. It excludes other lawyers’ fees and costs related to jurisdictional discovery and the sanctions motion.

Sun said Tuesday he plans to refile in California state court after the sanctions motion is resolved. A hearing is scheduled for Dec. 10.

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