The conflict escalated after World Liberty amended its corporate ownership disclosure in August, suddenly identifying 22 entities in its chain of ownership. While the firm initially listed Florida as its sole jurisdiction, the updated filing added Delaware, Puerto Rico, and the UAE. This pivot occurred shortly after a court hearing regarding Sun’s lawsuit, which involves a $45 million investment in WLFI tokens.
Sun argues the company’s failure to disclose its foreign ties earlier prevented the court from accurately determining its jurisdiction, effectively trapping his legal team in a protracted battle over federal versus arbitration proceedings. He contends that either the company’s lawyers failed to perform basic due diligence or the firm withheld critical information. Following the resolution of this motion, Sun intends to refile his fraud and token-freezing claims in California state court. The project, which previously branded itself as a U.S.-focused decentralized finance entity, has faced internal friction since Sun challenged its smart contract controls and governance restrictions.
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