Tron founder Justin Sun has requested nearly $264,000 in court sanctions against Donald Trump-backed World Liberty Financial, accusing the firm of concealing its United Arab Emirates citizenship for months during litigation. Sun claims World Liberty expanded its corporate disclosure from a single Florida entity to 22 members to strip federal court jurisdiction after freezing his $45 million investment. Following resolution of the motion, Sun plans to refile his fraud lawsuit in California state court.
Sun seeks sanctions over delayed citizenship disclosure
- ▪Tron founder Justin Sun requested sanctions against World Liberty Financial and its attorneys, seeking nearly $264,000 in legal fees and costs
- ▪World Liberty Financial filed its amended corporate disclosure on August 26, 2026, six days after an August 20, 2026 hearing regarding private arbitration
UAE ownership creates jurisdictional issue
- ▪Abu Dhabi-backed vehicle Aryam Investment 1 agreed in January 2025 to acquire a 49% stake in World Liberty Financial for $500 million, directing $187 million to Trump family-controlled entities
- ▪World Liberty Financial initially declared Florida as its sole citizenship in federal court before amending its disclosure to list 22 entities in its ownership chain, including United Arab Emirates citizenship
Federal lawsuit proceedings
- ▪A court order on September 29, 2026, paused Justin Sun's federal lawsuit against World Liberty Financial until October 22, 2026, for jurisdictional discovery
- ▪Justin Sun plans to refile his lawsuit against World Liberty Financial in California state court after the pending sanctions motion is resolved
Initial lawsuit and counterclaims
- ▪World Liberty Financial countersued Justin Sun in May 2026, describing Justin Sun's legal claims as a meritless public relations stunt
- ▪Justin Sun filed a lawsuit against World Liberty Financial in April 2026, asserting that World Liberty Financial induced his $45 million investment through fraud and unlawfully froze his tokens
Sun's token investment and frozen wallet
- ▪World Liberty Financial froze Justin Sun's digital wallet containing approximately 2.9 billion WLFI tokens, valued at roughly $150 million based on a November 2026 price of $0.05111
- ▪Justin Sun invested $45 million total in World Liberty Financial's WLFI tokens, beginning with an initial $30 million token purchase agreed upon in November 2024
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