Justin Sun is seeking sanctions regarding the delay in disclosing the nationality of UAE, and this disclosure may affect which court will handle the case.

Sun allegations that this crypto startup associated with Trump disclosed its UAE nationality only months after a bilateral legal dispute persisted. The Justin Sun sanction proposal has added another jurisdictional dispute to this complex case involving frozen tokens and an alleged investment of $45 million.

The disclosure of the nationality of World Liberty has raised doubts

Sun filed a lawsuit against World Liberty in April, accusing the project of fraudulent activities and illegally freezing his WLFI tokens. Subsequently, the company filed a counterclaim, stating that his legal actions were "baseless public relations stunts."

The nationality issue arose after World Liberty made modifications to its initial court disclosures. The documents submitted initially were said to list only one entity in the ownership chain, identifying Florida as the sole nationality. Subsequent documents listed 22 members of the ownership chain, stating that their nationalities included Florida, Delaware, Puerto Rico, and UAE.

Sun Doubts about the timing of file submission

Sun believes that the belated disclosure by UAE may undermine the federal jurisdiction over individuals with multiple nationalities. This jurisdiction depends on whether the parties to a lawsuit have different nationalities, so that the case can continue to be heard in federal courts. He claims that the revised disclosure is intended to challenge this jurisdiction and to move the dispute out of public court.

Sun stated in a strongly worded post that World Liberty “proudly claimed to be an American company” when selling tokens, but when it came time to get rid of U.S. courts, their UAE roots were revealed. He said that after the sanctions motion was resolved, he would file a lawsuit again in a California state court.

WLFI Token dispute still unresolved

Sun indicates that he invested $45 million in WLFI tokens. The token once rose to around $0.33, but now its trading price is close to $0.051, completely diluting the valuation to about $5.1 billion.

The sanction motion of Justin Sun has not resolved the underlying token disputes. For now, the arguments surrounding ownership disclosure and court jurisdiction have added new complexities to this case.