Justin Sun: A Look at His Legal Battles
Justin Sun has been no stranger to legal battles, often finding himself entangled in disputes both as a defendant and increasingly as a plaintiff. These cases typically involve companies in which Sun claims to have no ownership stake, yet his involvement in these firms is undeniable.
First Digital Trust vs. Techteryx
One of the most recent high-profile lawsuits involves a clash between Techteryx and First Digital Trust. Techteryx, the company behind TrueUSD (TUSD), has alleged that First Digital Trust misused portions of the TUSD reserves and invested them in a fund that is now refusing redemption requests. Sun, who is closely linked to Techteryx, claims that First Digital Trust’s insolvency is to blame for the rejection of redemptions.
First Digital Trust, the entity behind the FDUSD stablecoin, has refuted these claims, asserting that both the company and FDUSD are financially stable. They argue that the reason for the non-honoring of TrueUSD redemption requests is due to Techteryx’s failure to disclose the ultimate beneficial owner post-acquisition.
Sun’s Dispute with Huobi
Sun is also embroiled in a legal spat with Li Lin, the founder of Huobi (now known as HTX). The dispute revolves around allegations of a $30 million deficit in Huobi’s finances at the time of its sale to About Capital Management. While Li denies the existence of such a hole, Sun claims that Li had promised to return the $30 million to him.
This feud is just one chapter in the ongoing rivalry between Sun and Li, with previous lawsuits over the use of the Huobi name and ownership disputes adding to the animosity between the two entrepreneurs.
BiT Global vs. Coinbase
BiT Global, a custodian advised by Sun and involved in the operations of wrapped bitcoin (WBTC), has taken legal action against Coinbase for delisting WBTC. The lawsuit alleges monopolistic practices on Coinbase’s part, but the court has not compelled Coinbase to relist WBTC thus far.
Coinbase’s defense includes concerns over BiT Global’s lack of transparency regarding its ultimate beneficial owner, with one of the directors having ties to various Sun-affiliated companies.
Legal Dispute with David Geffen
Sun has also filed a lawsuit against music mogul David Geffen, claiming that a sculpture was sold to Geffen under false pretenses by Sun’s former art advisor. Geffen’s legal team dismisses the suit as “seller’s remorse,” citing the substantial payment made for the artwork.
In addition to these legal battles, Sun is facing a Securities and Exchange Commission lawsuit, which was put on hold after his investment in World Liberty Financial.