Justin Sun and two affiliated companies asked a California federal court to sanction World Liberty Financial and its lawyers, seeking $263,821.20 in fees and costs. They allege that World Liberty’s initial ownership disclosure omitted foreign ties, including UAE connections, and that the delay wasted months of litigation. World Liberty’s lawyers previously said they had only recently learned of the additional citizenship information.
World Liberty’s amended disclosure listed 22 people and entities in its ownership chain. The new information could defeat federal jurisdiction because Sun and his co-plaintiffs are foreign parties. Sun’s lawyers say the case will need to be refiled in California state court, but argue that the federal judge can still impose sanctions for earlier conduct. A hearing on the request is scheduled for December 10.
