Justin Sun Says He Has Filed a Sanctions Motion Against WLFI, Alleging Concealed UAE Shareholder Identity

TechFlow, November 03: Justin Sun said in an X post that his lawyers have filed a motion for sanctions with the court, seeking to hold World Liberty Financial and its counsel accountable, alleging that the company disclosed the presence of UAE citizens among its shareholders only months after litigation with him, in a suspected misleading disclosure to the court.

Justin Sun said he first invested $30 million to purchase WLFI tokens in November 2024, and later increased his total investment to $45 million. In April this year, he sued World Liberty, alleging fraud and the unlawful freezing of his tokens. During the litigation, World Liberty initially listed only one entity in its ownership disclosure documents and identified Florida as the sole location of citizenship; it later amended the disclosed ownership chain from 1 member to 22 and added citizenships in Delaware, Puerto Rico, and the UAE, among other locations.

Justin Sun believes World Liberty may be attempting to use its UAE-affiliated identity to challenge the federal court's jurisdiction and move the case out of federal court. He also said that after the federal court handles the sanctions motion, he will refile the lawsuit in California state court and continue to demand that the project disclose relevant information to token holders.

Source: TechFlow