Tron creator Justin Sun stated on Tuesday that he has submitted a motion requesting penalties against World Liberty Financial, claiming the decentralized finance protocol neglected to reveal its United Arab Emirates residency until several months into their court battle.
Sun, who reports a $45 million investment in WLFI tokens, initiated a lawsuit against the Trump-associated cryptocurrency project in April, charging it with fraud and the illegal freezing of his assets.
The disagreement regarding World Liberty’s residency arose after the business modified a previous legal filing that had originally named just a single entity within its ownership structure and stated Florida as its exclusive residency. In a later document, World Liberty pointed to 22 individuals in its ownership lineup and asserted residencies in Florida, Delaware, Puerto Rico, and the UAE, based on Sun’s statements.
Sun claims that the delayed notification was a strategy to contest the authority of the federal court and maneuver the litigation away from public view. World Liberty presented itself as proudly American during token sales, he remarked, yet uncovered its UAE connections solely when searching for an exit strategy from a U.S. federal courtroom.
Based on federal diversity jurisdiction regulations, Sun contended, his lawsuit could advance in federal court exclusively if he and World Liberty held residencies in separate jurisdictions. Because an enterprise assumes the residencies of its owners for these criteria, World Liberty’s UAE associations could jeopardize the court’s authority.
Sun mentioned his intention to submit the legal action anew in a California state court once the penalties request is concluded.
During May, World Liberty Financial filed a countersuit against Sun, labeling his actions a baseless public relations maneuver directed at the crypto initiative supported by the Trump family after his tokens were locked.
World Liberty launched in October 2024 amid intense examination because of its connection to President Donald Trump and his relatives. The WLFI token achieved a peak value of roughly $0.33 and trades near $0.051 at present, resulting in a fully diluted market capitalization of approximately $5.1 billion.
Originally published at https://www.theblock.co/news/regulation/2026-11-03-justin-sun-sanctions-world-liberty-uae-ties-wlfi-432439.
