Tensions have escalated between Eric Trump and Justin Sun, marking a dramatic shift from the public praise Trump expressed for the crypto entrepreneur just months ago.
Commenting on the dispute, Trump mocked Sun’s lawsuit, saying the only thing more “ridiculous” was the infamous $6 million duct-taped banana artwork—underscoring the growing hostility between the two sides.
Sun on Monday filed a complaint in the U.S. Northern District of California, accusing World Liberty Financial—a Trump family-backed decentralized finance project—of unlawfully freezing roughly 4 billion WLFI tokens, valued at about $1 billion.
In an informal response posted Tuesday, World Liberty dismissed the lawsuit as a “desperate” distraction and said it would continue prioritizing user protection. Co-founder Zach Witkoff also accused Sun of “misconduct,” though neither he nor the company provided specifics.
A company spokesperson declined further comment, directing inquiries to social media posts by Witkoff and Trump.
Sun’s complaint, however, offers insight into the dispute. He claims World Liberty privately raised a range of shifting allegations against him—none of which, he argues, were supported with evidence.
Among the accusations, the firm allegedly blamed Sun for a roughly 40% سقوط in WLFI’s price on September 1, 2025, the token’s first day of trading. The company also claimed Sun drove the decline by shorting perpetual futures on a centralized exchange—an allegation Sun denies, noting that his transactions occurred hours after the sharpest drop.
The filing further states that World Liberty objected to Sun’s $100 million purchase of TRUMP tokens tied to another Trump-backed project. Sun maintains the purchase had approval from a Trump family member involved in both ventures.
Additional claims outlined in the complaint include allegations that Sun acted as a straw buyer for other investors in violation of his token agreement, conducted unauthorized transfers to exchanges including HTX and Binance, and submitted insufficient know-your-customer (KYC) documentation.
According to the filing, tensions escalated further on September 25, 2025, when World Liberty associate Mr. Herro allegedly threatened to report Sun to U.S. criminal authorities over unspecified KYC concerns—issues that, Sun claims, were never clearly explained despite repeated requests for clarification.
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