Foresight News
Foresight News|11月 03, 2026 15:28
[Justin Sun's Legal Team Files Sanctions Request Against WLFI, Alleging Disclosure of Shareholder's UAE Citizenship Months After Lawsuit] Foresight News reports that Justin Sun tweeted that his lawyers have filed for sanctions against World Liberty Financial (WLFI) because the company disclosed its shareholder's UAE citizenship months after he filed the lawsuit. Sun stated that he signed a token purchase agreement in November 2024 to buy $30 million worth of WLFI, later increasing his total investment to $45 million. He sued WLFI in April of this year, accusing it of fraudulently inducing investment and illegally freezing his tokens. According to his token purchase agreement, the case can be filed in federal or state court in California; he chose federal court. Justin Sun stated that WLFI initially listed only one entity, registered in Florida, in its disclosure documents, and subsequently filed a motion for compulsory arbitration. Less than a week after the court hinted at not recognizing the arbitration claims and ruled that some claims should remain in open court at the August hearing, WLFI suddenly "corrected" its disclosure documents, increasing the number of members on the ownership chain from 1 to 22, and claiming citizenship in Florida, Delaware, Puerto Rico, and the UAE. It then argued that the federal court lacked jurisdiction because both parties had foreign parties involved. Sun pointed out that WLFI claimed it was "not an offshore organization" but "a company that pays taxes in the United States," and that it "presented itself as a US company when selling tokens, only discovering its UAE identity when it needed to get out of the US federal court." He stated that after the sanctions motion is ruled on in the federal court, he will re-file the lawsuit in the California state court.
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