Tron founder Justin Sun is seeking $263,821.20 in sanctions against World Liberty Financial (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 motion 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 latest dispute centers on a key argument WLFI has used to challenge the original case: whether its foreign ownership could prevent Sun’s original case from proceeding in federal court.
WLFI’s amended court disclosure becomes central to the dispute
In a federal court filing, 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 UAE.
In a post 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.”
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 is scheduled to hear the sanctions motion on December 10. 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. 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.
