American film producer, record executive and art collector David Geffen has hit back at crypto entrepreneur Justin Sun in a countersuit disputing ownership claims over a multimillion-dollar sculpture.
The billionaire American media mogul filed a counterclaim against Sun on April 16, calling the Tron founder’s suit a “sham” and adding claims of “unethical and/or illegal business activities.”
Sun sued Geffen in February, claiming that the statue was stolen from him by a former employee who then sold the artwork to Geffen in a deal worth around $65 million in artwork and cash.
Sun purchased the Alberto Giacometti sculpture titled “Le Nez” at a Sotheby’s auction in 2021 for $78 million, working with the assistance of his former art adviser, Xiong Zihan Sydney.
In the 100-page countersuit, Geffen claims that Sun and Xiong “contrived this fraudulent lawsuit” after they couldn’t profitably sell two paintings that Geffen had exchanged for the sculpture, along with $10.5 million in cash.
“Sun’s claims concerning Le Nez, a sculpture by the artist Alberto Giacometti, are utterly without merit and constitute a bad-faith, tortious attempt to interfere with Geffen’s ownership of Le Nez,” the counterclaim read.
Geffen also claims that Sun was eager to sell the sculpture because crypto markets were crashing throughout 2022 and 2023 and his crypto platforms Poloniex and HTX were repeatedly hacked for hundreds of millions of dollars in 2023.
Key disputes include whether Xiong confessed to stealing the sculpture, inconsistencies in Sun’s claims about how much money Xiong allegedly stole, and Geffen’s claim that Sun still has the money and the paintings, which are being held by art dealers.
Fraudulent behavior allegations
Geffen takes things further by alleging Sun has a history of fraudulent behavior, such as being sued by former employees for punishing them for refusing to engage in “unethical and/or illegal business activities,” and making false statements in other lawsuits.
On April 17, Sun’s lawyer, William Charron, refuted essential aspects of Geffen’s countersuit, according to ArtNet.
Ms. Xiong confessed to her theft, was arrested in China, and is in detention in China today, he said before adding: “In spite of these facts, Mr. Geffen goes all-in on the idea that Ms. Xiong was not a thief; that she supposedly spoke for Mr. Sun at all times; and that she is walking freely in China today. Mr. Geffen’s pleading is extremely misguided.”
“We eagerly look forward to litigating this case and to recovering Mr. Sun’s property,” he said.
In November, Sun bought Maurizio Cattelan’s Comedian — a banana taped to the wall — at Sotheby’s New York for $6.2 million, and then ate the banana at a press conference in a publicity stunt.