
GM. Justin Sun filed for sanctions against World Liberty Financial, alleging the Trump-linked firm hid its UAE citizenship to escape federal court in their $45 million dispute.
Elsewhere, the CFTC approved single-stock perpetual futures for US exchanges, Binance completed a fresh proof of reserves after its record hack, and Aztec shipped a major privacy upgrade.
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Tron founder Justin Sun filed a motion seeking sanctions against World Liberty Financial, alleging the Trump-linked DeFi protocol concealed its United Arab Emirates citizenship until months into their legal fight. Sun, who says he invested $45 million in WLFI tokens, sued in April alleging fraud and unlawfully frozen holdings.
World Liberty's first court disclosure listed a single entity in its ownership chain and Florida as its sole citizenship. A later filing named 22 members and claimed citizenship in Florida, Delaware, Puerto Rico and the UAE, which Sun calls a ploy to challenge federal jurisdiction.
Federal diversity jurisdiction requires opposing parties to be citizens of different places, and a company inherits its owners' citizenship, so UAE ties could knock the case out of federal court. Sun said World Liberty was proudly American when selling tokens and discovered its UAE roots only when needing an exit.
Justin Sun plans to refile in California state court once the sanctions motion is resolved, while World Liberty countersued in May, calling his claims a meritless PR stunt. The WLFI token trades near $0.051, down from a $0.33 peak, for a fully diluted valuation of about $5.1 billion.
CFTC Chair Michael Selig approved perpetual futures tied to individual stocks for US exchanges for the first time, with oversight shared between the CFTC and the SEC. Perps carry no expiry date and let traders bet on price moves without owning the underlying asset directly.
Perps surged in popularity after US and Israeli strikes on Iran hit over a weekend, when oil futures were closed but 24/7 venues like Hyperliquid kept trading. The agency earlier cleared bitcoin perps for Kalshi and Coinbase, while President Trump said in August he wanted Hyperliquid brought onshore.
Binance completed a zero-knowledge proof of reserves snapshot, letting holders of BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD and ZEC verify their balances are backed 1:1. The exchange said it replenished about 95% of hacked assets with its own funds, still acquiring the remaining less-liquid tokens.
Co-CEO Yi He said each full zero-knowledge proof takes 40 to 50 hours to generate, with another snapshot planned as withdrawals return network by network. Binance's 24-hour net outflows eased to about $3.29 billion from a $7 billion peak, per DeFiLlama, which tracks roughly $127.78 billion in its wallets.
Privacy-focused Ethereum Layer 2 Aztec rolled out its Tierra upgrade, designated Alpha V6, fixing a critical vulnerability found in V5 and adding an AI-powered security testing harness plus formal verification of core cryptography. The network runs more than 3,000 validators with no privileged viewing keys or centralized sequencer.
Private transactions now generate client-side proofs in about one second, twice as fast, while messages from Ethereum drop from two minutes to as little as 12 seconds. The launch brings private apps including the revived zk.money payments app, AI inference platform Galactica and perpetuals venue Nemi.
An unidentified EU entity may have lost more than $106 million from accounts at multiple crypto exchanges, according to blockchain investigator ZachXBT, though the losses remain unconfirmed. The attacker withdrew USDC and USDT, swapped into ether through instant-exchange services WellWallet and Kyrrez, and converted some into Monero via Wagyu.
ZachXBT published 11 linked wallet addresses and said he was highly confident North Korea's Lazarus Group was not responsible, citing multiple laundering indicators. The suspected theft follows the record Binance hack plus attacks on BTCPay and Brazil's Mercado Bitcoin, which apparently lost about $40 million.

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