Sun Seeks Sanctions Over Trump-Linked World Liberty's Late UAE Ownership Claim

Justin Sun, the Tron founder, has moved in a US federal court for sanctions against World Liberty Financial, the Trump family’s crypto venture. He says the company disclosed its UAE ownership only to get out of his $45 million fraud case.

At issue is whether Sun gets back his frozen WLFI tokens, which carry voting power in the project, and whether the company may freeze any holder’s coins.

How World Liberty’s Owner List Grew From 1 to 22

According to Sun’s post, World Liberty’s first court filing on ownership listed only the company itself, a Florida firm.

Under a week after an August hearing went partly against the company, it submitted a list of 22 members. Sun says those members live in Florida, Delaware, Puerto Rico and the UAE.

This matters because a company takes on the citizenship of each of its owners. US federal courts normally cannot hear a dispute between a foreign investor and a foreign company.

“World Liberty was proudly American when it was selling tokens. It discovered its UAE roots only when it needed a way out of an American federal courtroom,” Justin Sun claimed.

Sun says the firm’s lawyers claim they learned of the UAE connection only after filing. He adds that World Liberty refused to explain the change.

Last night, my lawyers moved to sanction World Liberty Financial @worldlibertyfi for failing to disclose, until months into my litigation against the company, that it is a citizen of the UAE 🇦🇪 . #WLFI #USD1

For those who are new to this dispute, I was one of World Liberty’s…

— H.E. Justin Sun 👨‍🚀 🌞 (@justinsuntron) November 3, 2026

Why Washington Was Already Asking About the UAE Stake

The Wall Street Journal reported earlier this year that Aryam Investment bought 49% of World Liberty for about $500 million. Aryam is reportedly backed by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser.

In June, five Senate Democrats pressed for hearings into that stake. In August, BeInCrypto traced the largest holding in a Trump-linked stablecoin bank to an Abu Dhabi power broker.

What Happens to Sun’s Frozen WLFI Tokens Now

Sun’s frozen wallet held about 2.9 billion WLFI when he sued in April. At today’s price of $0.05111, that comes to roughly $150 million.

World Liberty has described the freeze as a routine security step. It also sued Sun for defamation in Florida in May. BeInCrypto found no public response from the company to the sanctions motion.

Sun plans to refile in California state court once the judge rules on the sanctions request. That would push back any ruling on whether the freeze was lawful.