Justin Sun has moved to escalate his legal fight with Trump-linked World Liberty Financial, asking a federal court to sanction the company and its lawyers for allegedly hiding ties to the United Arab Emirates — a disclosure he says was withheld until months into his lawsuit over frozen WLFI tokens.
Sun, who filed the lawsuit in April, alleges that World Liberty initially told a U.S. court it was a Florida citizen. In an X post on Tuesday he said the company only amended that disclosure to include the UAE after a judge ruled some of his claims could remain in public federal court instead of being sent to private arbitration. That late change in corporate citizenship could undercut the court’s subject-matter jurisdiction and potentially derail Sun’s case in federal court.
Background and stakes
Sun was one of World Liberty’s earliest and largest backers. He agreed in November 2024 to buy $30 million worth of WLFI tokens, later increasing his exposure to $45 million. Those purchases made him a major investor in the decentralized finance project, which has reported ties to President Donald Trump and his family.
The legal dispute centers on Sun’s allegation that World Liberty induced his investment through fraud and then unlawfully froze his tokens, blocking him from accessing assets he bought. Sun says the company’s failure to disclose its UAE connection — and the timing of that disclosure — is part of a broader effort to evade transparency and accountability in the litigation.
Potential fallout
If the court accepts that World Liberty is not a U.S. citizen for diversity-jurisdiction purposes, Sun’s federal lawsuit could be dismissed or transferred, potentially sending the dispute into arbitration or a different forum. Sun’s sanctions request aims to punish what he describes as deliberate concealment and to keep the case within federal court.
The filing adds a new layer to an already high-profile clash involving a major crypto investor and a controversial DeFi project with political links, and it raises fresh questions about corporate transparency in tokenized ventures and cross-border litigation tactics.
Sun, who filed the lawsuit in April, alleges that World Liberty initially told a U.S. court it was a Florida citizen. In an X post on Tuesday he said the company only amended that disclosure to include the UAE after a judge ruled some of his claims could remain in public federal court instead of being sent to private arbitration. That late change in corporate citizenship could undercut the court’s subject-matter jurisdiction and potentially derail Sun’s case in federal court.
Background and stakes
Sun was one of World Liberty’s earliest and largest backers. He agreed in November 2024 to buy $30 million worth of WLFI tokens, later increasing his exposure to $45 million. Those purchases made him a major investor in the decentralized finance project, which has reported ties to President Donald Trump and his family.
The legal dispute centers on Sun’s allegation that World Liberty induced his investment through fraud and then unlawfully froze his tokens, blocking him from accessing assets he bought. Sun says the company’s failure to disclose its UAE connection — and the timing of that disclosure — is part of a broader effort to evade transparency and accountability in the litigation.
Potential fallout
If the court accepts that World Liberty is not a U.S. citizen for diversity-jurisdiction purposes, Sun’s federal lawsuit could be dismissed or transferred, potentially sending the dispute into arbitration or a different forum. Sun’s sanctions request aims to punish what he describes as deliberate concealment and to keep the case within federal court.
The filing adds a new layer to an already high-profile clash involving a major crypto investor and a controversial DeFi project with political links, and it raises fresh questions about corporate transparency in tokenized ventures and cross-border litigation tactics.