Billionaire Showdown: David Geffen Countersues Justin Sun Over $78M Giacometti Sculpture

TLDR

Table of Contents

David Geffen filed a 100-page countersuit against crypto entrepreneur Justin Sun over ownership of Giacometti’s “Le Nez” sculpture
Sun claims his former employee Xiong Zihan Sydney stole and sold the artwork to Geffen without permission
Geffen alleges Sun’s lawsuit is a “sham” created after failing to profitably resell paintings received in the exchange
The disputed deal involved two paintings valued at $55M plus $10.5M cash in exchange for the sculpture Sun bought for $78M
Sun’s lawsuit coincided with crypto market crashes and hacks of his platforms, which Geffen suggests motivated the legal action

Media mogul David Geffen has filed a countersuit against crypto entrepreneur Justin Sun, escalating a legal battle over the ownership of a $78 million Alberto Giacometti sculpture. The case pits an 82-year-old billionaire art collector against a 34-year-old crypto founder in what has become a high-stakes dispute.

The conflict centers on “Le Nez,” a bronze, steel, and iron sculpture created by Giacometti in 1949 and cast in 1965. Sun purchased the artwork at a Sotheby’s auction in 2021 for $78.4 million.

Sun’s February lawsuit claims his former art adviser, Xiong Zihan Sydney, stole the sculpture and sold it to Geffen without permission. According to Sun, the deal involved two paintings from Geffen’s collection valued at $55 million plus $10.5 million in cash.

In his 100-page countersuit filed on April 16, Geffen denies Sun’s allegations. He calls the lawsuit a “sham” and a “fraudulent scheme” to reclaim ownership after Sun and Xiong were unable to profitably sell the paintings from the exchange.

Deal Gone Wrong

The case hinges on conflicting accounts of Xiong’s role and authority. Sun claims she acted without permission, while Geffen points out that Xiong originally bid on the sculpture on Sun’s behalf at the 2021 auction.

Geffen alleges that Sun wanted to sell the sculpture because crypto markets were crashing throughout 2022 and 2023. He also notes that Sun’s crypto platforms Poloniex and HTX were hacked for hundreds of millions of dollars in 2023.

Both sides dispute what happened to the money and artwork involved in the transaction. Geffen claims Sun still has the money and paintings, which are being held by art dealers.

Sun’s lawyer, William Charron, defended his client on April 17. He stated that “Ms. Xiong confessed to her theft, was arrested in China, and is in detention in China today.” Charron called Geffen’s filing “extremely misguided.”

History of Controversy

Geffen’s countersuit alleges that Sun has a history of questionable behavior. It claims former employees have sued Sun for forcing them to engage in “unethical and/or illegal business activities.”

The filing also points to several inconsistencies in Sun’s story. For example, Geffen claims Sun has never filed a police report against Xiong for the supposed theft. The countersuit also notes that Xiong is still listed as director of Sun’s APENFT organization.

Sun is known for headline-grabbing stunts in the art world. In November, he purchased Maurizio Cattelan’s “Comedian” — a banana taped to a wall — at Sotheby’s New York for $6.2 million, and then ate the banana at a press conference.

Sun has claimed to have donated works by artists like Pablo Picasso and Andy Warhol to his APENFT organization, stating its collection is worth $100 million. However, in his lawsuit, Sun says he has only limited knowledge of APENFT, which he founded.

Geffen, who appears on ARTnews’s top 200 collectors list, reportedly owns a $2 billion art collection featuring works by David Hockney, Jasper Johns, Jackson Pollock, and Mark Rothko.

“Seller’s remorse is not a basis to sue,” said Tibor Nagy, Geffen’s attorney. “Courts of law are the wrong arena for publicity stunts.”

The legal filings reveal the complexity of high-value art transactions in today’s market. Sun admits he expressed interest in selling the Giacometti sculpture but only for at least $80 million – more than the $65.5 million Geffen allegedly paid.

According to Geffen’s countersuit, Sun and Xiong worked for over a year but could find no buyers for the two paintings included in the deal. This failure allegedly led to the lawsuit as an attempt to pressure Geffen to cancel the transaction.

Geffen’s filing claims Sun insists on being referred to as “His Excellency” (as stated on his website). It also alleges Sun deleted incriminating WhatsApp messages with art dealers about wanting to “reclaim” Le Nez before filing the lawsuit.

The case continues to develop as both sides present their evidence. With two billionaires involved and a $78 million sculpture at stake, the art and crypto worlds are watching closely to see how this dispute unfolds.

Stay Ahead of the Market with Benzinga Pro!

Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders: