Tron founder Justin Sun is asking a federal court to order World Liberty Financial and its lawyers to pay $263,821.20 in sanctions. Sun and two co-plaintiffs allege the company submitted a misleading disclosure about its ownership during a dispute over Sun’s $45 million investment in WLFI tokens.
The plaintiffs say World Liberty initially identified Florida as its sole citizenship, then amended its disclosure nearly three months later to name 22 individuals and entities in its ownership chain, including parties in the United Arab Emirates. Sun’s filing argues the company should have known its ownership structure from the outset and says it did not explain why the original disclosure omitted the additional information.
The amended disclosure followed a federal judge’s questioning of World Liberty’s request to move Sun’s claims into arbitration. The company’s lawyers later argued that the UAE citizenship meant the federal court lacked jurisdiction, because foreign parties were on both sides of the case. World Liberty did not immediately respond to Cointelegraph’s request for comment.
Sun sued World Liberty in April, alleging fraud and the unlawful freezing of his tokens. In May, World Liberty filed a defamation suit against Sun, accusing him of making false statements and breaching token-sale terms. Sun has denied those allegations.
The sanctions request covers fees for four attorneys who opposed arbitration, according to a sworn declaration by attorney Edward Moss. It does not include other lawyers’ fees or costs associated with investigating jurisdiction or preparing the sanctions motion.
Sun said Tuesday he intends to refile his token-freeze lawsuit in California state court after the sanctions motion is resolved. The hearing is set for Dec. 10.
Sources: Cointelegraph.