Justin Sun seeks sanctions against World Liberty Financial over UAE ties
Sun filed a sanction request tied to his $45 million WLFI token lawsuit and said he will refile the case in California state court.
Key takeaways
- 1Justin Sun filed a request for sanctions against World Liberty Financial over undisclosed UAE ties
- 2The request is tied to a $45 million lawsuit concerning WLFI tokens
Justin Sun on Thursday asked a federal court to sanction World Liberty Financial, saying the Trump-linked firm concealed its United Arab Emirates connections to avoid jurisdiction, as part of his $45 million lawsuit over WLFI tokens.
Sun alleged World Liberty hid its UAE citizenship until months after the suit was filed, arguing the omission was intended to escape federal oversight. He said the firm’s failure to disclose the ties breaches court rules. The founder also said he will refile the case in California state court.
Sun is the founder of Tron, a blockchain platform whose TRX token trades at $0.323, a 1.2 % rise on the day and a market value of $30.6 billion, ranking eighth by market cap. WLFI tokens are linked to World Liberty Financial, a company described as connected to former President Donald Trump. Sun has previously sued the firm over token sales, accusing it of fraud.
The move signals heightened scrutiny of politically linked crypto intermediaries and could pressure WLFI token holders to reassess exposure. Traders will watch the court’s response to the sanction request and any subsequent California filing. A ruling could set precedent for how undisclosed foreign affiliations are treated in crypto‑related litigation.
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