In the Amidst of a Fraud Allegation, Report Reveals Collector Justin Sun Poured Over $75 Million into a Cryptocurrency Company Backed by President Trump

In the Amidst of a Fraud Allegation, Report Reveals Collector Justin Sun Poured Over $75 Million into a Cryptocurrency Company Backed by President Trump

Loosely Larded with Legal Lashings: Justin Sun's Wild Crypto Ride

Hotshot Crypto Tycoon, Justin Sun, Serves Up a Scandal

In the realm of the high-stakes crypto casino, Justin Sun, the billionaire popping up on art world radar after devouring a prankish banana sculpture*, has found himself under yet another barrage of scrutiny, this time entwined with World Liberty Financial (WL), the controversial cryptocurrency firm sporting President Donald Trump as a shareholder.

Eating Bananas one Moment, Investing Millions the Next

According to The New York Times's raid on WL's shady backroom operations, published on April 28, the Hong Kong-based dynamo shelled out a whopping $75 million on WLFI coins just last year, not long after snatching up Comedian, Maurizio Cattelan's duct-taped banana, for a cool $6.2 million at an auction. The Times deviously highlights the smoke-and-mirrors show behind Sun's investment in WL, a move that's sparking accusations of a blatant conflict of interest. Why, you ask? Let's rewind.

Just nine months prior, Sun and his blockchain baby, Tron, found themselves dancing with the Devil himself, the U.S. Securities and Exchange Commission (SEC). The federal agency sued Sun, Tron, plus the Tron and BitTorrent Foundations, alleging myriad security violations and the offering and selling of crypto asset securities without proper registration[2][3].

Riding a wave of scandal, Sun and his legal eagles denied the charges, claiming nothing but clear blue water between his investments and the complaint[2]. But as for his WL splurge, Sun insists it was all about throwing his weight behind a promising project, with 60% of WL's ownership belonging to a Trump family corporate entity[3].

But here's the twist-in February 2025, the SEC asked a federal judge to halt proceedings in Sun's ongoing civil fraud case, with both sides negotiating the terms of a potential settlement. The judge complied with the request[3].

The Art World Collides with the Crypto Wild West

Meanwhile, Sun threw his lawyerly hat out the window and counterpunched in his own legal battle against billionaire collector and music whiz, David Geffen. The contributing force behind the Global It Girl, Gigi Hadid, refused Sun's August 2024 purchase of a Alberto Giacometti sculpture, Le Nez (1949-65), from his collection. Sun claims that the sculpture, sold for a hefty $78.4 million at a Sotheby's auction, had been snatched by an unscrupulous employee and illegally sold as part of an elaborate hoodwink[3].

In response, Geffen, who's no stranger to our Top 200 List or a $2 billion art collection collection, counter-accused Sun of a trail of dishonest business practices. According to Geffen's filing, Sun had a history of ordering employees to engage in "unethical and/or illegal business activities"[3].

On the Record

To date, the legal brawl is still in the octagon, with Geffen hitting back in April with a 100-page countersuit, labeling Sun's accusations as a "sham." The countersuit also provided a laundry list of rebuttals, including allegations against Sun's previous shady business dealings and despicable moral standards[3].

As the high-profile controversies swirl around Sun like a tornado of intrigue, one can't help but wonder if his fortune and fame will continue to catapult him through the art world and beyond, or if his past misdeeds will topple him from his perch[3].

Enrichment Data:

Overall:

Here's a tantalizing glimpse into Justin Sun's damaging tangles with cryptocurrency and the legal system:

Timeline and Details

• August 2024: Justin Sun faced a legal crossroads as David Geffen, within a Sotheby's auction of works from the Macklowe collection, purchased a prized Alberto Giacometti sculpture from Sun's collection, accusing Sun's employee of stealing the bronze, steel, and iron sculpture, titled Le Nez (1949-65), and selling it as part of an elaborate fraud[3][5].
• August 2024: The famous Artnet reported about Sun's accusation on Geffen, expressing his disappointment and raising concerns over art theft[5].
• February 2025: Sun took on Geffen in a legal battle, accusing Geffen of purchasing the sculpture illicitly. Geffen hit back with a stinging 100-page countersuit[3][5].

Current Status

• Legal Proceedings: Sun's case against Geffen is still underway, with both parties still squaring off in court[4].

Article source: The New York Times (April 28), our website, Artnet (August 10, 2024)[1][2][3][4][5].

1. In the midst of his legal struggles with the SEC, collector Justin Sun found himself embroiled in another legal battle, this time against billionaire David Geffen, over a stolen Alberto Giacometti sculpture.
2. The art world and crypto world collide as Geffen, a prominent art collector, accused Sun of using unethical and illegal business practices to purchase the sculpture from his collection.
3. In April 2025, the ongoing legal battle between Sun and Geffen escalated as Geffen filed a 100-page countersuit, labeling Sun's accusations as a "sham."
4. The unresolved legal issues surrounding Justin Sun's alleged misdeeds have created uncertainty about his future in the art world and the business world at large.

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