Ten months ago, Eric Trump wrote on X about how much he loved Justin Sun. This week he compares a Sun lawsuit to the infamous $6 million banana tape.
Sun filed a complaint in the Northern District of California on Monday, accusing World Liberty Financial of illegally freezing about $4 billion of WLFI tokens worth about $1 billion. The Trump family-backed DeFi project’s informal response Tuesday dismissed the case as a “desperate” denial and vowed to keep protecting its users, with co-founder Zach Witkoff accusing Sun of “misconduct.”
Justin Sun’s recent lawsuit against @worldlibertyfi is a desperate attempt to divert attention from Sun’s own offense. His claims are completely baseless and World Liberty looks forward to having the case thrown out immediately.
He engaged in misconduct that required World…
— Zach Witkoff (@ZachWitkoff) 22 April 2026
Neither he nor the company explained Sun’s alleged wrongdoing. A spokesperson for the company declined to comment, instead referring CoinDesk to Witkoff and co-founder Eric Trump’s post on X.
The complaint itself can fill in the blanks. Sun claimed that World Liberty leveled a changing set of accusations against him in private conversations and correspondence, none of which he claimed were backed up by evidence.
According to the filing, World Liberty has at various times blamed Sun for the roughly 40% price crash that $WLFI experienced on September 1, 2025, the first day the token became tradable.
WLFI also alleged that Sun lowered the price by short-selling perpetual futures on a centralized exchange, according to Sun’s complaint, a charge Sun said is false, and that the complaint notes would be difficult to pin on him since his transfers happened hours after the steepest decline.
World Liberty separately objected to Sun’s $100 million purchase of $TRUMP tokens from another Trump-backed project, according to the filing, but Sun said that purchase had the blessing of a Trump family member who is a partner in both ventures.
The company also allegedly accused Sun of acting as a straw buyer for other investors in violation of his token purchase agreement, of making prohibited transfers to exchanges HTX and Binance and of submitting insufficient know-your-customer documentation, according to the filing.
“On September 25, 2025, Mr. Herro repeatedly threatened to report Mr. Sun to U.S. criminal authorities over these unspecified KYC issues — which Mr. Herro and World Liberty have refused to explain in anything but the broadest terms despite repeated requests by plaintiffs for additional information,” Tuesday’s filing said.
WLFI has yet to file a response to Sun’s suit.
