David Geffen files countersuit in $78 million art ownership battle

American media mogul and art collector David Geffen has filed a countersuit against crypto entrepreneur Justin Sun, escalating a legal dispute over the ownership of Alberto Giacometti’s sculpture “Le Nez,” valued at $78 million.

Geffen’s counterclaim, submitted on April 16, describes Sun’s original lawsuit as a “sham” and alleges it is part of a fraudulent scheme to interfere with Geffen’s lawful ownership of the artwork.

The dispute began when Sun sued Geffen in February, claiming that the sculpture was stolen from him by a former employee, Xiong Zihan Sydney, and later sold to Geffen in a complex transaction involving $65 million in art and cash.

Geffen’s 100-page countersuit argues that Sun and his former adviser “contrived this fraudulent lawsuit” after failing to profitably sell two paintings exchanged in the deal, along with $10.5 million in cash.

“Sun’s claims concerning Le Nez, a sculpture by the artist Alberto Giacometti, are utterly without merit and constitute a bad-faith, tortious attempt to interfere with Geffen’s ownership of Le Nez,” the filing states.

Geffen also alleges that Sun’s urgency to sell the sculpture was driven by financial pressures, including losses from the crypto market downturn and repeated hacks of Sun’s platforms, Poloniex and HTX, in 2023.

The countersuit raises questions about whether Xiong confessed to theft, the accuracy of Sun’s claims regarding the amount allegedly stolen, and whether Sun still retains the money and paintings involved in the transaction.

Geffen further accuses Sun of a pattern of “unethical and/or illegal business activities,” citing previous lawsuits and controversies that have surrounded Sun and his companies.

“Ms. Xiong confessed to her theft, was arrested in China, and is in detention in China today. In spite of these facts, Mr. Geffen goes all-in on the idea that Ms. Xiong was not a thief; that she supposedly spoke for Mr. Sun at all times; and that she is walking freely in China today. Mr. Geffen’s pleading is extremely misguided. We eagerly look forward to litigating this case and to recovering Mr. Sun’s property,” stated Sun’s attorney, William Charron, rejecting Geffen’s claims.