Crypto
World Liberty Financial Plans More WLFI Buybacks as Justin Sun Presses Sanctions Motion Over UAE Ties
Image: Mohamed_hassan via Pixabay
The Trump-backed token is down about 10% since the midterms and more than 66% this year as a federal court fight with the Tron founder escalates.
By Emmanuel Cruz ·
World Liberty Financial, the crypto venture backed by the Trump family, said it plans further buybacks of its WLFI token after a steep slide in its price, even as a court dispute with Tron founder Justin Sun grows more heated.
CoinDesk reported on November 6 that WLFI had lost about 10% of its value since the November 3 midterm elections and more than 66% so far this year [1]. The report tied the latest drop to Republicans performing worse than expected in the elections, and said the TRUMP memecoin and Trump Media shares had also hit record lows [1]. Following the buyback announcement, WLFI rose about 3.5% since midnight UTC on Friday, according to CoinDesk's market report [2].
According to World Liberty's post on X, as relayed by CoinDesk, the buybacks may be funded partly by fees from the reserves that back its USD1 stablecoin, along with other sources. The project said it wants to increase governance participation and give more voting power to committed long-term holders, and described buybacks as "an ongoing part of our long-term strategy" [1]. CoinDesk noted that in April the project disclosed $65.6 million of open-market buybacks over the prior six months [1].
The announcement landed in the middle of a legal fight. On November 3, Sun's lawyers asked a federal court in California to sanction World Liberty, according to The Block and Decrypt [3][4]. Sun, who says he invested $45 million in WLFI tokens, sued the company in April, alleging fraud and an unlawful freeze of his tokens [3]. His new motion argues that World Liberty failed to disclose its ties to the United Arab Emirates until months into the case [3].
Sun's account of the filings is specific. He says World Liberty's first court disclosure listed a single entity in its ownership chain and Florida as its only citizenship. A later filing, he says, listed 22 members and citizenship in Florida, Delaware, Puerto Rico and the UAE [3]. Under federal diversity rules, a company takes on the citizenship of its owners, so Sun argues the disclosure was meant to challenge the court's jurisdiction and move the case out of open court [3][4]. He says he plans to refile in California state court once the motion is resolved [3]. "I will keep fighting for the transparency this community deserves," Sun said [4].
World Liberty's position is less fully documented in the sources reviewed. The Block said it did not report a response to the sanctions motion. In May, the company countersued Sun after his tokens were frozen, and it called his lawsuit a "meritless PR stunt," The Block reported [3]. Decrypt added that the countersuit alleges Sun shorted WLFI and drove down its price, and that at an August hearing a judge signaled some of Sun's claims should stay in open court rather than go to arbitration [4].
The token's valuation shows how far sentiment has moved. The Block put WLFI near $0.051 as of November 3, a fully diluted valuation of roughly $5.1 billion, compared with an all-time high of about $0.33 [3].
What to watch next: whether the court rules on the sanctions motion or the jurisdiction question, how much WLFI the project actually buys back and on what schedule, and whether the political backdrop in Washington keeps weighing on Trump-linked tokens. Decrypt has reported that Democrats cite conflicts of interest tied to Trump's crypto ventures as a reason to oppose crypto-friendly legislation [5].
Sources:
[1] CoinDesk, "Trump-backed World Liberty Financial plans token buyback after 66% year-to-date slide", November 6, 2026. https://www.coindesk.com/business/2026/11/06/trump-backed-world-liberty-financial-plans-token-buyback-after-66-year-to-date-slide
[2] CoinDesk, "Bitcoin steadies after AI-led selloff as eyes turn to latest U.S. jobs figures: Crypto Markets Today", November 6, 2026. https://www.coindesk.com/markets/2026/11/06/bitcoin-steadies-near-usd76-000-after-ai-led-selloff
[3] The Block, "Justin Sun seeks sanctions against World Liberty, alleging Trump-linked firm hid UAE ties", November 3, 2026. https://www.theblock.co/news/regulation/2026-11-03-justin-sun-sanctions-world-liberty-uae-ties-wlfi-432439
[4] Decrypt, "Justin Sun Accuses Trump-Backed World Liberty of Using UAE Ties to Escape Federal Court", November 3, 2026. https://decrypt.co/382469/justin-sun-sanctions-trump-backed-world-liberty-uae-ties
[5] Decrypt, "Democrats to Push Broader Crypto Market Structure Bill After Sweeping US Midterms: Report", November 5, 2026. https://decrypt.co/382602/democrats-to-push-broader-crypto-market-structure-bill-after-sweeping-us-midterms-report
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.