Justin Sun Demands $264K Sanctions Against World Liberty Financial, Why?

Tron founder Justin Sun is preparing to take his legal battle with World Liberty Financial (WLFI) into another round, seeking to hold the Trump family-linked crypto company and its lawyers accountable over what he describes as a misleading ownership disclosure in their ongoing dispute.

Sun has filed a motion seeking $263,821.20 in sanctions against WLFI and its legal team, accusing them of concealing the company’s ownership structure and only disclosing its connection to a United Arab Emirates (UAE) citizen months after he initiated legal proceedings.

The latest move is separate from the lawsuit Sun filed in April, in which he accused WLFI of using fraudulent tactics to secure his investment before freezing his WLFI tokens.

This time, the dispute centers on a key argument WLFI has used to challenge the original case. WLFI has argued whether its foreign ownership could prevent Sun’s original case from proceeding in federal court. 

However, Sun argues that the company should have disclosed the information from the beginning.

WLFI’s amended court disclosure becomes central to the dispute

In a federal court filing, Justin Sun and two co-plaintiffs alleged that World Liberty initially identified Florida as its sole citizenship before revising the disclosure nearly three months later to list 22 individuals and entities in its ownership chain, including parties connected to the United Arab Emirates.

In his tweet on X, explaining the motion, Sun said, “Last night, my attorney filed a motion with the court seeking sanctions against World Liberty Financial. The reason: It only disclosed that it is a UAE citizen after I had sued it for several months.”

https://x.com/justinsuntron/status/2117912242574569869?a=gn2FsRzeyFxJHX6oaMM&s=20

Notably, the revised disclosure was submitted six days after a federal judge questioned WLFI’s attempt to move Sun’s claims into arbitration.

Sun further argues that the company is now using its newly disclosed foreign ownership to challenge the federal court’s jurisdiction.

WLFI’s lawyer, Sam Cleveland, said in an August 26 email included in the court exhibits that his team had “recently” learned of additional citizenship information. However, he maintained that the company already had UAE citizenship when Sun filed his lawsuit in April.

Sun’s lawyers then sought corporate records and testimony explaining WLFI’s ownership structure and when its legal team became aware of the UAE connection. They allege that the company provided limited documentation but refused to explain why the original disclosure omitted the information.

How much is Justin Sun seeking in legal sanctions?

According to a sworn declaration by attorney Edward Moss, the $263,821.20 sanction request covers work by four attorneys opposing WLFI’s arbitration motion. It excludes fees and expenses incurred by other lawyers, as well as costs associated with jurisdictional discovery and the sanctions motion itself.

Sun argues that WLFI should bear the legal costs resulting from what he considers an improper disclosure rather than shifting those expenses to him.

The court schedules to hear the sanctions motion on December 10. Most notably, Sun has reiterated that he intends to refile his original investment lawsuit in California state court after the court resolves the request.

Sun and WLFI are already involved in separate legal battles

The sanctions dispute further complicates the ongoing legal fight between Sun and WLFI.

Justin Sun sued the company in April, accusing it of fraud and unlawfully freezing his tokens. WLFI filed its own defamation lawsuit against him in May, alleging that he made false statements and violated the terms of its token sale. Sun has denied those claims.

The dispute comes amid Sun’s broader financial ties to the Trump family’s crypto ventures. In January 2025, an Abu Dhabi-backed investment vehicle agreed to acquire a 49% stake in WLFI for $500 million.

Sun has also invested in WLFI and purchased President Donald Trump’s TRUMP memecoin. He was among the largest holders of the token, which granted him the May 2025 dinner with Trump, with his holdings valued at approximately $18.5 million.