A public dispute has erupted between Eric Trump and Justin Sun, highlighting a sharp reversal from Trump’s earlier praise of the crypto entrepreneur.
Trump dismissed Sun’s lawsuit in blunt terms, comparing it to the widely publicized $6 million duct-taped banana artwork and calling the legal action “ridiculous.”
The clash stems from a complaint filed Monday in the Northern District of California, where Sun accused World Liberty Financial—a Trump family-backed project—of improperly freezing approximately 4 billion WLFI tokens, valued at around $1 billion.
World Liberty responded informally on Tuesday, characterizing the lawsuit as a “desperate” attempt to deflect attention while reaffirming its commitment to safeguarding users. Co-founder Zach Witkoff accused Sun of “misconduct,” though the company did not elaborate on the claim. A spokesperson declined further comment, pointing instead to statements made by Witkoff and Trump on X.
Sun’s filing offers a detailed rebuttal, alleging that World Liberty circulated a series of shifting accusations in private discussions without providing supporting evidence.
According to the complaint, the firm at various points blamed Sun for a roughly 40% drop in WLFI’s price on September 1, 2025—its first day of trading—and accused him of contributing to the decline by shorting perpetual futures. Sun denies both claims, arguing that his transactions occurred only after the most severe price drop had already taken place.
The lawsuit also references World Liberty’s objections to Sun’s $100 million purchase of TRUMP tokens tied to a separate Trump-affiliated project. Sun contends the transaction had been approved by a Trump family member involved in both ventures.
Additional allegations cited by World Liberty include claims that Sun acted as a proxy buyer for other investors in breach of his token agreement, made unauthorized transfers to exchanges such as HTX and Binance, and failed to provide sufficient KYC documentation.
The complaint further alleges that tensions escalated on September 25, 2025, when an associate of the firm, Mr. Herro, repeatedly threatened to report Sun to U.S. authorities over unspecified KYC concerns—issues Sun says were never clearly defined despite multiple requests for clarification.
