Justin Sun has asked a federal court to sanction World Liberty Financial over how late it disclosed its UAE ties. The motion lands as Republicans lose control of Congress and Trump-linked tokens trade far below their peaks.
Justin Sun is seeking nearly $264,000 in sanctions from World Liberty Financial, the Trump-backed project behind the WLFI token. He alleges the company failed to disclose its UAE ownership ties. The push comes as Republicans lose control of Congress in the 2026 midterms, handing Democrats a sweeping victory.
Sun targets World Liberty's ownership disclosures
Sun invested $45 million in WLFI tokens before his relationship with the project deteriorated. He sued the company in April, accusing it of fraud and unlawfully freezing his tokens. World Liberty countersued, describing his claims as a "meritless PR stunt."
The new fight centers on a court filing. Sun alleges World Liberty first identified Florida as its sole citizenship in federal court, then amended the filing to list 22 entities in its ownership chain, with citizenship across Florida, Delaware, Puerto Rico and the United Arab Emirates. He argues the late disclosure could undermine the federal court's jurisdiction.
The motion seeks legal fees and costs from the company and its attorneys. World Liberty's lawyers reportedly said they learned about the UAE citizenship after the original filing, and the court has not determined whether the company intentionally concealed its ownership ties. Sun plans to refile his lawsuit in California state court once the motion is resolved.
Trump-linked tokens trade far below their highs
The legal dispute arrives as the official Trump token, which reached $73.43 in January 2025, has fallen to around $1.50, a 98% drop. The Melania meme coin once hit approximately $13.05 and now trades near seven cents. WLFI has slipped from an all-time high near $0.33 to roughly five cents.
World Liberty also operates USD1, a dollar-pegged stablecoin that has grown into a major part of the project's business. The midterm results have not triggered investigations into Trump crypto ventures, but Democrats will gain subpoena power once the new Congress convenes.
Source: Cryptonews
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