On Wednesday, November 4, 2026, LCX reported that Justin Sun, the founder of Tron, has asked a federal court to penalize World Liberty Financial and its legal team with $263,821.20 in sanctions over how the company described its ownership in a lawsuit tied to his $45 million purchase of WLFI tokens.
Sun and two co-plaintiffs say World Liberty’s first jurisdictional filing named Florida as its only place of citizenship. Roughly three months later, the company submitted a revised version listing 22 people and entities in its ownership structure, some of them based in the United Arab Emirates. Sun argues the company knew its owners all along and refused to explain the discrepancy.
The revision arrived six days after a federal judge raised doubts about World Liberty’s attempt to send Sun’s claims to arbitration. World Liberty’s attorneys then contended that its UAE ties meant the federal court lacked jurisdiction, since foreign parties appeared on both sides of the case.
Court exhibits include an August 26 email
Court exhibits include an August 26 email from World Liberty lawyer Sam Cleveland, who wrote that his side had recently discovered more citizenship details. Cleveland said the company already counted as a UAE citizen when Sun filed suit in April.
Sun’s attorneys requested corporate records and testimony about the ownership chain and the point at which World Liberty’s counsel learned of the UAE link. They say the company handed over only limited paperwork and would not say why the first filing omitted the information.
A sworn declaration from Sun’s attorney, Edward Moss, puts the sanctions figure at the cost of four lawyers’ work opposing arbitration. Fees for other attorneys, along with expenses from jurisdictional discovery and the sanctions motion itself, are not included.
World Liberty Financial did not immediately reply to a request for comment.
The dispute began in April, when Sun sued
The dispute began in April, when Sun sued the company, alleging fraud and an improper freeze on his tokens. In May, World Liberty countersued for defamation, accusing Sun of making false statements and breaching token-sale terms. Sun has denied those claims.
The litigation follows a January 2025 deal in which an investment vehicle backed by Abu Dhabi agreed to pay $500 million for a 49% stake in World Liberty.
Sun said Tuesday he intends to refile his case in California state court after the sanctions request is decided. A hearing on it is set for December 10.
