David Geffen Countersues Justin Sun Over $78M Sculpture Dispute

David Geffen, a prominent media mogul, has filed a counterclaim against Justin Sun, the founder of the cryptocurrency TRON, in a dispute over the ownership of a $78 million sculpture. The legal battle began when Sun sued Geffen in February, claiming that the sculpture, titled "Le Nez" by Alberto Giacometti, was stolen from him by a former employee who then sold it to Geffen for around $65 million in artwork and cash. Sun had purchased the sculpture at a Sotheby’s auction in 2021 for $78 million, with the assistance of his former art adviser, Xiong Zihan Sydney.

In his counterclaim, Geffen alleges that Sun and Xiong "contrived this fraudulent lawsuit" after they were unable to profitably sell two paintings that Geffen had exchanged for the sculpture, along with $10.5 million in cash. Geffen's legal team argues that Sun's claims are without merit and constitute a bad-faith attempt to interfere with Geffen's ownership of the sculpture. The counterclaim also suggests that Sun was eager to sell the sculpture due to the crashing crypto markets in 2022 and 2023, as well as repeated hacks on his crypto platforms Poloniex and HTX, which resulted in the loss of hundreds of millions of dollars.

Key disputes in the case include whether Xiong confessed to stealing the sculpture, inconsistencies in Sun’s claims about the amount of money Xiong allegedly stole, and Geffen’s assertion that Sun still possesses the money and the paintings, which are being held by art dealers. Geffen further alleges that Sun has a history of fraudulent behavior, including being sued by former employees for engaging in unethical and/or illegal business activities and making false statements in other lawsuits.

In response to Geffen's counterclaim, Sun's lawyer, William Charron, refuted several key points. Charron stated that Xiong confessed to her theft, was arrested in China, and is currently in detention. He also criticized Geffen's assertion that Xiong was not a thief and that she was acting on Sun's behalf, describing Geffen's pleading as "extremely misguided." Charron expressed confidence in litigating the case and recovering Sun's property.

This legal dispute highlights the complexities of ownership and the legal challenges that can arise in the intersection of art and digital assets. The outcome of this case will have significant implications for both the art world and the cryptocurrency community, as it involves a substantial sum of money and the reputations of both high-profile individuals. The legal battle is expected to unfold in the coming months, with both parties presenting their arguments in court.