Sun Yuchen’s legal team has filed a motion for sanctions against WLFI, accusing it of failing to disclose the UAE citizenship of its shareholders until several months after litigation commenced.

Sun Yuchen posted a statement on X, announcing that his legal team has formally filed a motion with the court seeking sanctions against World Liberty Financial (WLFI) for failing to disclose—until several months after he initiated litigation—that its shareholder is a citizen of the United Arab Emirates. According to Sun, he signed a token purchase agreement in November 2024, initially investing $30 million in WLFI tokens and later increasing his total investment to $45 million. In April this year, he filed a lawsuit against WLFI in federal court, alleging fraudulent inducement and unlawful freezing of his tokens. Jurisdiction rests on a clause in the token purchase agreement stipulating that disputes may be brought before either U.S. federal or California state courts; Sun elected to file in federal court. Sun noted that in its initial disclosures filed early in the case, WLFI identified itself solely as a single entity registered in Florida—and also moved to compel arbitration. A hearing on that motion was held in August.