The continued legal bout between crypto billionaire Justin Sun and leisure mogul David Geffen over Alberto Giacometti’s Le Nez has formally entered its maximalist part. What started as a dispute over an $80 million sculpture now entails accusations of artwork fraud and cast paperwork, dialogue of the crypto market’s collapse, and allegations that an artwork adviser has been detained in China.
The sculpture in query—a bronze, metal, and iron piece Solar bought for $78.4 million at Sotheby’s in 2021—was allegedly bought to Geffen with out his information by former adviser Sydney Xiong. In February, Solar filed swimsuit in New York, the place the sculpture at present resides, claiming that Xiong executed the sale utilizing fictitious legal professionals and cast paperwork, strolling away with “a whole lot of 1000’s of {dollars}” for herself.
Geffen responded with a 100-page countersuit in April, calling Solar’s declare “weird and baseless” and attributing the dispute to “vendor’s regret.”
In a latest submitting, Solar’s authorized workforce claimed that Xiong has been detained with out bail since February on the Dezhou Detention Heart in Shandong Province, China. “It’s extremely unwise for Mr. Geffen to have staked his case on his proclaimed innocence of Sydney Xiong,” Solar’s lawyer William Charron advised ARTnews in an e mail. “Ms. Xiong confessed to her theft, she was arrested in China and is in detention in China in the present day.”
Solar’s lawsuit claims that Xiong diverted Le Nez to an artwork storage facility in Delaware operated by sellers David and Cole Tunkl. The piece was then allegedly bought to Geffen for $10.5 million in money and two unidentified work, which Solar was anticipated to promote to make up the stability—regardless of him by no means authorizing the transaction, court docket submitting say. Solar says he solely ever agreed to promote Le Nez if the worth was north of $80 million.
Geffen’s submitting, in the meantime, alleges that Solar and Xiong failed to dump the 2 work at a revenue, after which tried to claw again the Giacometti by fabricating a authorized declare. The countersuit additionally factors to what it claims are inconsistencies in Solar’s narrative: no police report was filed, WhatsApp messages have been deleted, and Solar’s legal professionals acquired conflicting details about when, how, and even when the alleged fraud occurred. Xiong, Geffen’s workforce notes, remained listed because the director of Solar’s APENFT platform months after the preliminary lawsuit was filed.
After which there’s the matter of APENFT itself. Solar beforehand alleged that he’d donated Le Nez to the platform (and even retweeted their thank-you message), however later claimed he by no means really did. In 2023, the work was loaned to the Institut Giacometti in Paris, with no clear path of how or why it left Solar’s arms.
Geffen’s camp additionally seized on Solar’s latest monetary and reputational bother. Between the crypto crash, a $115 million hack of his platforms in 2023, and an SEC civil fraud case nonetheless in play, Solar’s credibility, Geffen argues, is much from unassailable. The countersuit cites a number of lawsuits by former staff accusing Solar of forcing them to interact in unethical or unlawful enterprise practices.
Solar, for his half, stays adamant. “Geffen is clinging to the fiction that Sydney Xiong was not a thief,” Charron mentioned in an announcement. “Extra very compelling particulars will come out by way of the fullness of this litigation.”
