Justin Sun said his lawyers asked a federal court in California to sanction World Liberty Financial and its lawyers over the timing of a disclosure about its ownership. According to Sun, the company initially listed only Florida citizenship, then amended its filing to list 22 members in its ownership chain and citizenship that included the UAE. He said World Liberty now argues that the federal court lacks jurisdiction; that argument has not been resolved.
Sun sued World Liberty in April, alleging it misled him into investing and unlawfully froze his WLFI tokens. The company has alleged in court that Sun shorted WLFI and drove down its price. Sun said he plans to refile his lawsuit in California state court after the sanctions motion is resolved.
