Ten months ago, Eric Trump posted on X about how much he loved Justin Sun. This week, he’s comparing a Sun lawsuit to the infamous $6 million banana covered in duct tape.
Sun filed a complaint on Monday in the Northern District of California, accusing World Liberty Financial of illegally freezing approximately $4 billion in WLFI tokens worth about $1 billion. The Trump family-backed DeFi company’s informal response Tuesday dismissed the lawsuit as a “desperate” diversion and pledged to continue protecting its users, with co-founder Zach Witkoff accusing Sun of “misconduct.”
Justin Sun’s recent lawsuit against @mundolibertadfi is a desperate attempt to divert attention from Sun’s own misconduct. Their claims are completely baseless and World Liberty hopes the case will be dismissed as soon as possible.
Engaged in misconduct that required World…
-Zach Witkoff (@ZachWitkoff) April 22, 2026
Neither he nor the company explained Sun’s alleged misconduct in detail. A spokesperson for the company declined to comment and instead referred CoinDesk to posts by Witkoff and his co-founder Eric Trump on X.
The complaint itself may fill in the blanks. Sun alleged that World Liberty leveled a series of shifting accusations against him in private conversations and correspondence, none of which, he argued, the company has backed up with evidence.
According to the filing, World Liberty has at various points blamed Sun for the roughly 40% price drop that $WLFI experienced on September 1, 2025, the first day the token became tradable.
WLFI also claimed that Sun drove down the price by shorting perpetual futures on a centralized exchange, according to Sun’s complaint, an allegation that Sun said is false, and that the complaint’s notes would be difficult to attribute to him, given that his transfers occurred hours after the steepest drop.
World Liberty separately objected to Sun’s purchase of $100 million of $TRUMP tokens from a different Trump-backed project, according to the filing, but Sun said this purchase got the blessing of a Trump family member who is a partner in both companies.
The company also allegedly accused Sun of acting as a front buyer for other investors in violation of their token purchase agreement, executing prohibited transfers to the HTX and Binance exchanges, and submitting inadequate 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 other than the broadest terms despite plaintiffs’ repeated requests for additional information,” Tuesday’s filing says.
WLFI has yet to file a response to Sun’s lawsuit.
