Justin Sun Seeks Sanctions Against World Liberty Financial
Sun says World Liberty Financial disclosed its ties to the UAE too late in the dispute over frozen WLFI tokens. The case also touches on jurisdiction and the role of the Trump network around the DeFi project.
Key Takeaways
- Justin Sun is asking a U.S. judge for sanctions against World Liberty Financial and its lawyers.
- Sun says World Liberty disclosed its ties to the United Arab Emirates too late in the case over frozen WLFI tokens.
- The judge has not yet found that World Liberty knowingly hid its ownership, while Sun wants to refile his case later.
Tron founder Justin Sun is asking a U.S. judge for sanctions against World Liberty Financial and its lawyers. According to Sun, the Trump-linked crypto company only disclosed its ties to the United Arab Emirates months later in a lawsuit over frozen WLFI tokens.
Battle Over the Courtroom
Sun filed a case in April against World Liberty Financial. He says the company initially told the federal court in California that it was a Florida resident, but later changed that statement to also mention the UAE. According to Sun, that happened only after a judge ruled that part of his claims could stay in public court and did not have to be moved to private arbitration.
That change could matter for whether the case can continue in federal court. In U.S. cases, foreign ownership or a foreign base can affect a judge's authority. World Liberty is now arguing that the court does not have jurisdiction.
Why the UAE Ties Matter
The case is not just about procedure, but also about World Liberty's structure. The crypto company was co-founded by Donald Trump and his sons Eric and Donald Trump Jr., and that Trump connection reportedly played a role in the interest of investors like Sun. For European crypto readers, this shows how quickly governance, ownership structure, and legal jurisdiction can come into play with DeFi vaults backed by big names.
Sun says World Liberty should have disclosed its foreign ownership from the start, especially because his lawyers spent months and hundreds of thousands of dollars fighting arbitration. He writes that the company first presented itself as American when it sold tokens, and only later brought up its UAE connections. According to Sun, World Liberty said it only discovered that UAE citizenship later.
What Sun Wants Now
Sun was one of the first and biggest investors in World Liberty. He bought $30 million (€26.8 million) worth of WLFI tokens in November 2024 and later increased his total investment to $45 million (€40.3 million). The relationship then worsened after Sun said he was brought in through fraud and that his tokens were then unlawfully frozen.
The allegations are still disputed, and the judge has not found that World Liberty knowingly hid its ownership. Sun does say he wants to refile his case in California court once the sanctions request is resolved.