Trump Crypto Empire Faces Fresh Heat: Justin Sun Seeks WLFI Sanctions

Dextape brief

By Dextape Desk · November 4, 2026

Justin Sun has asked a court to impose roughly $264,000 in penalties on World Liberty Financial, alleging it hid its United Arab Emirates ownership ties. Sun, who put $45 million into WLFI tokens, sued the firm in April over alleged fraud and frozen holdings. He says the original federal filing named only Florida, while a later amendment listed 22 entities across several jurisdictions including the UAE. World Liberty's lawyers reportedly said they only learned of the UAE citizenship after the first filing, and the court has not yet ruled on whether any concealment was intentional. Once the sanctions request is resolved, Sun intends to refile his case in California state court. Separately, Trump-linked tokens have sunk, with TRUMP reportedly about 98 percent below its peak and Melania Meme down more than 99 percent.

Why it matters: The dispute shows how undisclosed ownership questions can follow politically linked crypto projects, compounding pressure as their token values have fallen sharply.

Summary by Dextape, based on reporting by Cryptonews. Written with AI from the publisher’s text and checked automatically for copied wording and unsupported figures. Not investment advice.