The fight between Justin Sun and World Liberty Financial has taken another turn, this time over a disclosure that could affect where the case is heard. Sun is seeking sanctions against the Trump-linked crypto venture, alleging it disclosed its UAE citizenship months into their legal dispute. The Justin Sun sanctions motion adds a jurisdictional fight to an already messy dispute over frozen tokens and an alleged $45 million investment.
Sun sued World Liberty in April, accusing the project of fraud and unlawfully freezing his WLFI tokens. The company later countersued, describing his legal action as a “meritless PR stunt.”
The citizenship issue emerged after World Liberty amended its initial court disclosure. Its first filing reportedly listed one entity in its ownership chain and Florida as its sole citizenship. A subsequent filing identified 22 members in the ownership chain and claimed citizenship in Florida, Delaware, Puerto Rico, and the UAE.
Sun argues the late UAE disclosure could undermine federal diversity jurisdiction, which depends on the parties having different citizenship for the case to proceed in federal court. He alleges the revised disclosure was an attempt to challenge that jurisdiction and move the dispute out of open court.
In a pointed post, Sun said World Liberty was “proudly American” when selling tokens, but discovered its UAE roots when it needed a way out of an American courtroom. He says he’ll refile in California state court after the sanctions motion is resolved.
Sun says he invested $45 million in WLFI tokens. The token previously reached around $0.33 and now trades near $0.051, with a fully diluted valuation of approximately $5.1 billion.
The Justin Sun sanctions motion doesn’t settle the underlying token dispute. For now, the fight over ownership disclosures and court jurisdiction adds another complication to the case.
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