Justin Sun demands court sanctions over Trump-linked World Liberty Financial’s hidden UAE owners

Sun's lawyers requested sanctions against World Liberty Financial and its attorneys on Nov. 3, after the company disclosed foreign ownership connections months into litigation over his $45 million investment. The accusation centers on whether the company selectively invoked its American identity depending on whether it was raising money or defending itself in court.

Ownership disclosure controversy

In August, World Liberty expanded its ownership disclosure from one entity to 22, identifying citizenship in Florida, Delaware, Puerto Rico and the UAE. Sun alleged the company initially disclosed only Florida citizenship despite rules requiring full ownership structure disclosure.

UAE investment connection

The ownership dispute carries political significance as World Liberty's ties to the UAE were already attracting scrutiny over potential conflicts involving the president's family. In January 2025, an investment vehicle backed by UAE National Security Adviser Sheik Tahnoon bin Zayed Al Nahyan acquired a 49% stake in World Liberty for $500 million.

The agreement, signed by Eric Trump, directed approximately $187 million to Trump family-controlled entities. Sheikh Tahnoon, a brother of the UAE president, oversees an investment empire with interests in artificial intelligence and advanced technology.

Legal proceedings ahead

World Liberty argued that its UAE citizenship deprived the federal court of jurisdiction, claiming foreign parties were present on both sides of the lawsuit. Sun, who sued in April for fraud and frozen tokens, said his lawyers had spent hundreds of thousands of dollars contesting the arbitration request.

Sun contends the company either failed to provide accurate information to its attorneys or that its lawyers inadequately investigated the ownership structure. He plans to pursue the original dispute in California state court after the federal judge addresses his sanctions request.