Justin Sun Accuses World Liberty Of Misleading Ownership Disclosure In $45M Token Lawsuit

TL;DR:

• Sanctions request: Justin Sun seeks $263,821.20 from World Liberty Financial and its lawyers, alleging a misleading ownership disclosure in a dispute over his $45 million WLFI investment.
• Ownership filing: World Liberty first listed Florida as its only citizenship, then amended to name 22 individuals and entities, including UAE parties, six days after a judge questioned arbitration.
• Next steps: Sun plans to refile in California state court after the sanctions motion is resolved, with a hearing set for Dec. 10.
  

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Tron founder Justin Sun wants $263,821.20 in sanctions from World Liberty Financial and its legal team, saying the Trump family-linked crypto firm gave the court a misleading ownership disclosure in a fight over his $45 million WLFI token investment.

Ownership Disclosure At Center Of Filing

In a federal court filing, Justin Sun and two co-plaintiffs said World Liberty first told the court Florida was its only citizenship. Nearly three months later, the company amended that filing to list 22 individuals and entities in its ownership chain, including parties in the United Arab Emirates. “World Liberty presumably always knew who its owners were,” Justin Sun said. “When we asked how this happened, World Liberty refused to tell us.”

The amended disclosure arrived six days after a federal judge raised questions about World Liberty’s request to push Justin Sun’s claims into arbitration. World Liberty’s lawyers then said the UAE citizenship removed federal court jurisdiction because foreign parties sat on both sides of the case. In April, Justin Sun sued World Liberty, alleging fraud and unlawful freezing of his tokens. World Liberty answered with a defamation suit in May, claiming false statements and token-sale violations. He denied those allegations.

Prior Deal And New Court Plans

The dispute follows a January 2025 agreement in which an Abu Dhabi-backed investment vehicle agreed to buy a 49% stake in World Liberty for $500 million. Justin Sun had backed the Trump family’s crypto projects, investing in World Liberty and buying President Donald Trump’s TRUMP memecoin. He topped the token’s leaderboard for a May 2025 Trump dinner, with holdings near $18.5 million.

In an Aug. 26 email in court exhibits, World Liberty lawyer Sam Cleveland said his team had “recently” learned of more citizenship details. He said World Liberty already had UAE citizenship when Justin Sun filed suit in April. Justin Sun’s lawyers sought corporate records and testimony about the ownership and when the lawyers learned of the UAE link. They claim World Liberty gave limited documents but did not explain why the first disclosure left that information out.

Attorney Edward Moss said in a declaration that the $263,821.20 request covers fees for four attorneys who opposed arbitration. It excludes other fees and costs for jurisdictional discovery and the sanctions motion. Justin Sun said Tuesday he plans to refile in California state court once the sanctions motion is resolved. A hearing is set for Dec. 10.