Justin Sun has escalated his legal dispute with World Liberty Financial by seeking sanctions over allegedly misleading ownership disclosures. The Tron founder claims the Trump-linked crypto company concealed its United Arab Emirates connections during their ongoing litigation. He argues that the late disclosure undermined his legal strategy and forced unnecessary litigation expenses.
Sun shared the development on November 3, revealing that his lawyers had filed a sanctions motion. He initially invested $30 million in WLFI tokens in November 2024. Consequently, his total investment eventually reached $45 million.
Dispute Over Company Ownership
Sun sued World Liberty in April, accusing the company of fraudulently securing his investment. He also alleged that the project unlawfully froze his tokens.
Besides, Sun challenged World Liberty’s attempt to move their dispute into private arbitration. He says the company initially disclosed only one ownership entity and identified Florida as its citizenship.
However, World Liberty later amended that disclosure, listing 22 ownership entities. The updated filing identified connections to Florida, Delaware, Puerto Rico, and the UAE.
Sun Plans Further Legal Action
Significantly, Sun argues that the UAE connection could undermine federal court jurisdiction. He accuses the company of using its revised disclosure to escape federal proceedings.
Moreover, he wants the court to hold World Liberty and its lawyers accountable. Sun plans to refile his lawsuit in California state court after resolving the sanctions motion.
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