Justin Sun is asking a California federal court to sanction World Liberty Financial over what he says were delayed corrections to its ownership and citizenship disclosures. Sun filed suit on April 21, 2026, over frozen WLFI tokens. The company’s June 2 filing identified WLF Holdco LLC as its parent, and a supplemental Rule 7.1 disclosure followed on August 26.
Sun argues World Liberty initially listed Florida as its sole citizenship, then amended the filing to include a United Arab Emirates citizenship connection. That distinction matters because federal jurisdiction can depend on the citizenship of the parties; the court needs enough information to determine whether it can hear the case at all. On September 29, the case was stayed for jurisdictional discovery, meaning the court is still gathering facts about its authority to hear the dispute.
Rule 7.1 disclosures also give courts a record of corporate ownership, relevant to transparency and potential conflicts. Sun says the timing and completeness of World Liberty’s amendments should carry consequences before the court reaches the token-freeze allegations. But that request doesn’t decide whether World Liberty improperly blocked sales of Sun’s tokens after they became tradeable in September 2025. For now, the dispute is over disclosure, credibility, and which court hears the underlying case.