California · Donald Trump · United Arab Emirates · Cointelegraph
In April, Sun sued World Liberty, alleging fraud and the unlawful freezing of his tokens
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World Liberty filed a defamation lawsuit against Sun in May, alleging false statements and violations of token-sale terms.
Key facts
- The legal back-and-forth followed a January 2025 agreement by an Abu Dhabi-backed investment vehicle to purchase a 49% stake in World Liberty for $500 million
- Tron founder Justin Sun is seeking $263,821.20 in sanctions against World Liberty Financial and its lawyers, accusing the Trump family-linked crypto company of submitting a misleading court
- According to attorney Edward Moss’s sworn declaration, the $263,821.20 request covers fees for four attorneys’ work opposing arbitration
- In an Aug. 26 email included in the court exhibits, World Liberty’s lawyer Sam Cleveland said his team had “recently” learned of additional citizenship information
Summary
Sun plans to refile his token-freeze lawsuit in California state court after the sanctions motion is resolved. Tron founder Justin Sun is seeking $263,821.20 in sanctions against World Liberty Financial and its lawyers, accusing the Trump family-linked crypto company of submitting a misleading court disclosure about its ownership in a legal dispute over his $45 million WLFI token investment. In a federal court filing, Sun and two co-plaintiffs alleged that World Liberty initially listed Florida as its sole citizenship before amending its disclosure nearly three months later to identify 22 individuals and entities in its ownership chain, including those in the United Arab Emirates. “World Liberty presumably always knew who its owners were,” Sun said. The amended disclosure came six days after a federal judge questioned World Liberty’s bid to move Sun’s claims into arbitration.