Tron creator Justin Sun is requesting sanctions against the Trump-connected World Liberty Financial and its legal counsel, charging the cryptocurrency enterprise with hiding its connections to the United Arab Emirates until months into his legal battle regarding blocked WLFI tokens.
Sun, who initiated legal action against World Liberty in April, mentioned that the firm previously informed a California federal court that it operated as a Florida citizen via an X post on Tuesday. Months later, following a judge’s decision that allowed certain allegations to stay in public court instead of shifting to private arbitration, World Liberty updated its corporate disclosure to incorporate the UAE.
This revised disclosure might block Sun’s litigation from moving forward in federal court.
Sun ranked among World Liberty’s initial and biggest financial backers, committing to acquire $30 million worth of WLFI tokens in November 2024 before increasing his aggregate investment to $45 million. This funding position established Sun as a primary supporter of the decentralized finance initiative, which maintains close associations with President Donald Trump and his relatives.
Nevertheless, the partnership deteriorated as Sun claimed that the organization enticed his capital through deceptive practices and subsequently froze his tokens without authorization, blocking access to the assets he had acquired.
World Liberty Financial previously defended its choice to block Sun’s tokens. The organization was unavailable for comment regarding the most recent claims.
Sun states that World Liberty attempted to shift the conflict into private arbitration in April, an effort he contested. The judiciary decided during an August session that specific claims ought to stay in public court while others should proceed to arbitration.
Scarcely a week afterward, World Liberty updated its corporate disclosure. Rather than indicating exclusively that it operated as a Florida entity, the corporation outlined 22 entities within its ownership structure and asserted citizenship across Florida, Delaware, Puerto Rico, and the UAE, according to Sun.
This detail is critical because federal courts generally lack authority to adjudicate this category of dispute when foreign citizens appear on opposing sides. World Liberty currently contends that the tribunal lacks jurisdiction.
Sun maintains that the enterprise should have revealed its foreign ownership from the very beginning, prior to his legal team spending months and hundreds of thousands of dollars fighting its arbitration motion.
“World Liberty was proudly American when it was selling tokens,” Sun posted on X. “It discovered its UAE roots only when it needed a way out of an American federal courtroom.”
Legal representatives for World Liberty have stated they discovered the UAE citizenship subsequent to submitting the initial disclosure, based on Sun’s remarks.
Sun is urging the court to hold the business and its legal team responsible for what he characterizes as a deceptive filing. He indicated his intention to restart his lawsuit in a California state court once the sanctions motion reaches a conclusion.
These assertions remain contested, and the tribunal has not established that World Liberty deliberately concealed its ownership structure.
Originally published at https://www.coindesk.com/policy/2026/11/03/justin-sun-seeks-sanctions-against-trump-linked-world-liberty-financial-over-uae-ties.
