Crypto Mogul Justin Sun Sues David Geffen Over $78M Sculpture

In a high-stakes legal battle, crypto entrepreneur Justin Sun has sued American media mogul David Geffen over the ownership of an Alberto Giacometti sculpture, “Le Nez,” valued at $78 million. The dispute began when Sun accused his former art adviser, Xiong Zihan Sydney, of stealing the sculpture and selling it to Geffen without his permission. Sun claims the deal was worth around $65 million in artwork and cash.

Geffen, in response, filed a 100-page countersuit, labeling Sun’s lawsuit as a “sham” and alleging that it was fabricated after Sun and Xiong failed to sell two paintings that were part of the exchange for the sculpture, along with $10.5 million in cash. Geffen’s legal team argues that Sun’s claims are baseless and that the lawsuit is a bad-faith attempt to interfere with Geffen’s ownership of the artwork.

The core of the dispute revolves around whether Xiong had the authority to sell the artwork. Sun alleges that Xiong used deception, forged documents, and other subterfuges to steal the sculpture. Geffen’s attorney, Tibor Nagy, counters that Sun is experiencing “seller’s remorse” and that the lawsuit is an attempt to undo a legitimate transaction. Geffen suggests that Sun’s financial difficulties, including the crashing of crypto markets and repeated hacks on his platforms, Poloniex and HTX, may have motivated him to sell the sculpture.

Key points of contention include Xiong’s alleged confession to stealing the sculpture and inconsistencies in Sun’s claims about the amount of money Xiong supposedly stole. Geffen asserts that Sun still possesses both the money and the paintings from the exchange, which are being held by art dealers. Geffen’s countersuit also alleges a history of fraudulent behavior by Sun, claiming he has been sued by former employees for engaging in unethical and illegal business activities.

Sun’s lawyer, William Charron, vehemently denies these allegations, stating that Xiong confessed to her theft, was arrested in China, and is currently in detention. Charron criticizes Geffen’s claims as misguided and unfounded. The case has garnered significant attention in both the crypto and art worlds, with Sun previously making headlines for his unconventional art purchases and public stunts.

Sun originally acquired “Le Nez” at a Sotheby’s auction in November 2021 for $78.4 million, with Xiong’s assistance. Sun had initially stated his intention to donate the work to his APENFT organization but later denied making the donation. He did, however, lend the sculpture to an exhibition at the Institut Giacometti in Paris in 2023. Sun admits to expressing interest in selling the piece but claims he would only do so if a buyer was willing to pay at least $80 million.

Both parties are prepared to continue the legal battle, with Sun’s lawyer expressing eagerness to litigate the case and recover Sun’s property. As the case progresses, it underscores the intersection of traditional art collection and newer crypto wealth, with two influential figures from different industries and generations clashing over the ownership of a masterpiece. The outcome could set precedents for high-value art transactions and the due diligence required when purchasing multi-million dollar artwork through intermediaries.