Sun Yuchen applied for sanctions against World Liberty and its lawyer, amounting to approximately $264,000

According to documents from the United States District Court for the Northern District of California, Sun Yuchen and two co-plaintiffs have applied for sanctions against World Liberty Financial and its attorneys, seeking approximately $264,000 in attorney fees and costs. The plaintiffs allege that World Liberty made false disclosures regarding its citizenship in the litigation.

The plaintiffs claim that World Liberty initially only disclosed its citizenship in Florida, and nearly three months later supplemented its disclosure to include 22 members in its ownership chain, with citizenship also including places like the UAE. World Liberty's attorneys subsequently argued that, since both parties in the litigation have foreign entities, the federal court lacks jurisdiction.

The amount requested involves attorney fees and costs related to the plaintiffs' opposition to mandatory arbitration. The plaintiffs stated in the documents that they would have to refile in California state court; a hearing on the sanctions application is scheduled for December 10.