Justin Sun Seeks Sanctions Against World Liberty Over Alleged UAE Nondisclosure

Justin Sun said Tuesday his lawyers filed a motion seeking sanctions against World Liberty Financial, alleging it failed to disclose its UAE ties earlier in the dispute over frozen WLFI tokens.

Sun says World Liberty initially identified Florida as its sole citizenship in federal court filings. He says a later amended disclosure listed 22 entities in the company’s ownership chain, with citizenship claims involving Florida, Delaware, Puerto Rico and the United Arab Emirates.

The revised filing followed an August hearing on World Liberty’s effort to move Sun’s claims into private arbitration. Sun alleges the company later used its UAE citizenship to challenge the federal court’s jurisdiction. He argues the ownership information should have been disclosed earlier and says his legal team spent months and hundreds of thousands of dollars opposing arbitration.

The dispute stems from Sun’s $45 million WLFI investment, which began with a $30 million purchase in November 2024. Sun sued in April, alleging fraud and unlawful freezing of his holdings. World Liberty has rejected his allegations and filed a defamation lawsuit against him.

Sun said he plans to refile his case in California state court after the federal court resolves the sanctions motion.