The dispute between Sun Yuchen and World Liberty Financial (WLFI) continues to escalate. He said his legal team has asked the court to sanction WLFI, arguing that the company disclosed only months after the lawsuit began that a member of its ownership chain held UAE citizenship.
According to Sun Yuchen, he signed a token purchase agreement in November 2024, initially investing $30 million, with his total investment later rising to $45 million. In April this year, he sued WLFI, alleging that it had fraudulently induced him to invest and unlawfully frozen the relevant tokens.
He specifically noted that WLFI’s initial disclosures listed only one entity registered in Florida, and that the company had sought to compel arbitration. But after the court indicated at an August hearing that it did not accept the arbitration argument and ruled that some claims would remain in open court, less than a week later WLFI “corrected” its disclosures. The number of members in the ownership chain increased from 1 to 22, and the company claimed they had ties to Florida, Delaware, Puerto Rico, and the UAE, arguing on that basis that the federal court lacked jurisdiction.
Sun Yuchen criticized WLFI for presenting itself as a “U.S. taxpayer company” when selling tokens, yet emphasizing its UAE ties only when seeking to avoid federal court. He said that once the federal court rules on the sanctions motion, he will refile the lawsuit in California state court.
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