Sun Seeks Sanctions Against World Liberty Over UAE Disclosure

Justin Sun said November 3 that he had asked a federal judge to sanction World Liberty Financial and its lawyers, alleging the company delayed disclosing ownership information that could affect the court’s jurisdiction over his lawsuit. The allegations have not been resolved by the court. Sun’s motion concerns an amended corporate-citizenship disclosure that identified 22 entities in World Liberty’s ownership chain and listed Florida, Delaware, Puerto Rico and the United Arab Emirates as citizenship jurisdictions, according to reporting on the filings. The company had initially listed Florida as its sole citizenship, Sun said. He argues the UAE information should have been disclosed earlier and that the later change raises questions about whether the federal court can hear the case. The dispute is part of Sun’s lawsuit over approximately 4 billion frozen WLFI tokens tied to his $45 million investment. Filed in federal court in California in April, the suit alleges fraud, breach of contract and unlawful restrictions on his holdings. Sun says the freeze prevented him from transferring tokens and exercising governance rights. World Liberty has said its sale terms disclosed the...