Justin Sun Says He Has Applied to Sanction WLFI, Accusing It of Concealing UAE Shareholder Identity

On November 3, Justin Sun posted on X stating that his lawyers have filed a sanctions application with the court, seeking to hold World Liberty Financial and its counsel accountable. He accused the company of misleading the court by disclosing months into their litigation that a shareholder holds UAE citizenship.

Justin Sun stated that he initially invested $30 million in November 2024 to purchase WLFI tokens, later increasing his total investment to $45 million. In April of this year, he sued World Liberty, alleging fraud and illegal freezing of his tokens. During the litigation, World Liberty initially listed only one entity in its ownership disclosure documents and identified Florida as its sole jurisdiction for citizenship; it subsequently amended the disclosed ownership chain from one member to 22 members, adding citizenships from Delaware, Puerto Rico, and the UAE.

Justin Sun believes World Liberty's move may be intended to challenge the federal court's jurisdiction by leveraging its UAE affiliation to remove the case from federal court. He also stated that after the federal court rules on the sanctions application, he will refile the lawsuit in California state court and continue to demand that the project disclose relevant information to token holders.