Geffen Calls Crypto Founder’s Lawsuit a “Sham” in Escalating Legal Battle
Billionaire media mogul and renowned art collector David Geffen has filed a countersuit against Tron founder Justin Sun, accusing the crypto entrepreneur of orchestrating a “fraudulent scheme” in a high-stakes dispute over ownership of Alberto Giacometti’s $78 million sculpture, Le Nez.
Filed on April 16, Geffen’s 131-page counterclaim labels Sun’s initial February lawsuit as a “sham,” alleging it was part of a bad-faith attempt to reverse a legitimate transaction involving $10.5 million in cash and two paintings that were traded for the sculpture.
“Sun’s claims concerning Le Nez are utterly without merit and constitute a bad-faith, tortious attempt to interfere with Geffen’s ownership,” the filing reads.
The Backstory: A High-Value Sculpture and a Former Art Adviser
Sun originally acquired Le Nez at a 2021 Sotheby’s auction for $78.4 million, reportedly with the help of former art adviser Xiong Zihan Sydney, who has since become the center of the legal dispute.
In his lawsuit, Sun claims that Xiong stole the sculpture and later sold it to Geffen as part of a $65 million deal involving artwork and cash. Geffen, however, argues that the transaction was entirely legitimate and that Sun’s motive for reclaiming the piece stemmed from financial losses incurred during the 2022–2023 crypto market crash and multiple security breaches at Sun-linked platforms Poloniex and HTX.
A Battle of Confessions and Contradictions
The legal standoff now revolves around several key questions:
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Did Xiong confess to theft, as Sun claims?
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Are there inconsistencies in Sun’s account of how much Xiong allegedly stole?
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Does Sun still possess the two paintings and cash involved in the trade?
Geffen’s countersuit maintains that Sun still controls the art and cash, which are allegedly being held by intermediaries.
Geffen also raises broader allegations, claiming that Sun has a pattern of unethical behavior, including:
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Lawsuits filed by former employees for being punished after refusing to engage in “illegal or unethical conduct.”
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Making false claims in unrelated legal proceedings.
Sun’s Legal Team Fires Back
In response, Sun’s attorney William Charron told ArtNet on April 17 that Geffen’s countersuit is “misguided.”
“Ms. Xiong confessed to her theft, was arrested in China, and is in detention today,” Charron said.
“Despite these facts, Mr. Geffen insists she was not a thief and spoke for Mr. Sun at all times.”
Charron added that they “eagerly look forward to litigating this case and recovering Mr. Sun’s property.”
Final Thoughts: Art, Crypto, and Publicity Collide
This isn’t Justin Sun’s first brush with high-profile art controversy. In November 2023, he purchased Maurizio Cattelan’s Comedian—a banana duct-taped to a wall—for $6.2 million, and then ate the banana during a press conference as part of a publicity stunt.
The ongoing dispute between Sun and Geffen, which blends the worlds of high finance, crypto volatility, and fine art, is becoming a symbol of how unregulated crypto capital collides with traditional institutions—and may set a legal precedent for how digital tycoons interact with legacy collectors.
As both sides dig in, the future of Le Nez—and who ultimately owns it—remains up in the air. What’s certain is that this battle is far from over.
