Tron's Justin Sun Demands $264K in Sanctions Following World Liberty's UAE Ownership Revelation
The crypto entrepreneur intends to pursue his token-freeze case in California state court once the sanctions matter concludes. The court has scheduled a Dec. 10 hearing.
The founder of Tron, Justin Sun, has requested sanctions totaling $263,821.20 against World Liberty Financial along with its legal representatives, claiming the cryptocurrency firm with connections to the Trump family provided deceptive court documentation regarding its ownership structure in a legal battle concerning his $45 million investment in WLFI tokens.
According to a filing submitted to federal court, Sun along with two additional co-plaintiffs claim that World Liberty originally declared Florida as its exclusive citizenship location, only to revise this disclosure almost three months afterward by revealing 22 separate individuals and corporate entities within its ownership structure, with some located in the United Arab Emirates.
"World Liberty presumably always knew who its owners were. When we asked how this happened, World Liberty refused to tell us."
Justin Sun
World Liberty Financial did not immediately respond to Cointelegraph's request for comment.
The revised disclosure surfaced six days following a federal judge's scrutiny of World Liberty's attempt to transfer Sun's legal claims to arbitration. Legal counsel for World Liberty then contended that the firm's UAE citizenship eliminated the federal court's jurisdiction on the grounds that foreign entities existed on each side of the legal dispute.
Sun initiated legal proceedings against World Liberty in April, making allegations of fraudulent activity and the improper freezing of his token holdings. World Liberty responded by launching a defamation case against Sun in May, claiming he made false public statements and breached token-sale agreement conditions. Sun has rejected these accusations.
The escalating legal confrontation emerged after a January 2025 deal in which an investment entity supported by Abu Dhabi agreed to acquire a 49% ownership stake in World Liberty for $500 million.
Sun had previously demonstrated support for the Trump family's cryptocurrency initiatives through his investment in World Liberty and his acquisition of President Donald Trump's TRUMP memecoin. His holdings, which reached approximately $18.5 million in value, secured him the top position on the token's leaderboard, earning him a May 2025 dinner invitation with Trump.
UAE ownership disclosure prompts jurisdiction dispute
Within an Aug. 26 email that was included among the court exhibits, Sam Cleveland, an attorney representing World Liberty, stated his legal team had "recently" discovered additional citizenship details. He asserted that World Liberty possessed UAE citizenship status at the time Sun initiated his lawsuit in April.
Legal representatives for Sun then requested corporate documentation and witness testimony regarding World Liberty's ownership composition and the timeline of when its legal team became aware of the UAE association. They contend that World Liberty supplied minimal documentation while refusing to provide an explanation for why its initial disclosure failed to include that crucial information.
Based on a sworn declaration provided by attorney Edward Moss, the requested amount of $263,821.20 represents fees associated with the work of four legal professionals who opposed the arbitration effort. The figure does not include additional lawyers' fees and expenses connected to jurisdictional discovery proceedings and the sanctions motion itself.
Sun announced Tuesday his intention to refile the case in California state court following resolution of the sanctions motion. A hearing is scheduled for Dec. 10.