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Justin Sun Seeks Sanctions as World Liberty’s UAE Citizenship Pushes His Suit Toward State Court
The Tron founder says WLF's ownership disclosure went from one Florida entity to 22 members, with UAE citizenship among them, after an August hearing went partly his way, and that WLF now argues the federal court can't hear the case.
Dextape brief
Justin Sun asked a federal judge to sanction World Liberty Financial, saying the firm failed to disclose its UAE citizenship until months into his lawsuit, per an X post on Tuesday. His lawyers filed the motion Monday night. Unchained could not access the motion or WLF's two ownership disclosures through free public dockets. Sun said he will refile in California state court after the sanctions request is decided. The case is before Judge James Donato in the Northern District of California. Sun argues citizenship decides whether federal court can hear the case, since an LLC takes on the citizenship of each owner. He says WLF's first disclosure named one entity with Florida citizenship, while a revised version filed after an August hearing listed 22 members with citizenships spanning Florida, Delaware, Puerto Rico and the UAE.
Why it matters: The dispute shows how ownership disclosures and citizenship rules can decide which court hears a crypto-linked suit over a large investment.
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