Justin Sun sues WLFI over hidden UAE ties, token freeze
6.8 Regulation Justin Sun seeks sanctions against WLFI for allegedly hiding UAE ownership in a $45M token dispute, raising concerns about transparency and jurisdiction in crypto.
Justin Sun has intensified his legal battle with World Liberty Financial (WLFI), alleging that the company failed to disclose its United Arab Emirates (UAE) ownership until months into litigation over a $45 million investment in WLFI tokens. Sun claims this delayed disclosure could impact federal court jurisdiction and has filed a motion for sanctions against WLFI and its attorneys, seeking $263,821 in legal fees. The dispute centers on Sun’s allegations of fraud, breach of contract, and the unlawful freezing of approximately 4 billion tokens. Revised court documents revealed 22 entities in WLFI’s ownership chain, raising significant concerns about transparency and investor protection. Sun argues that WLFI’s late disclosure was intended to undermine the court’s authority. He plans to refile his claims in California state court if federal jurisdiction is lost. The case underscores broader issues of ownership transparency, compliance, and jurisdiction within the cryptocurrency industry.
