Eric Trump and WLFI Co-Founder Push Back on Justin Sun’s Lawsuit, Calling Claims ‘Meritless’

Eric Trump called Justin Sun’s lawsuit against World Liberty Financial “ridiculous” while co-founder Zach Witkoff called the claims meritless, as WLFI declined to address Sun’s specific allegations about frozen tokens and USD1 reserves.

World Liberty Financial co-founders Eric Trump and Zach Witkoff responded publicly on Wednesday to Justin Sun’s federal lawsuit, dismissing it as a meritless deflection.

Eric Trump, the president’s son and a co-founder of the Trump-family-backed DeFi project, posted on X: “The only thing more ridiculous than this lawsuit is spending $6 million on a banana duct-taped to a wall,” mocking Sun’s well-publicized purchase of Maurizio Cattelan’s banana artwork.

This story is an excerpt from the Unchained Daily newsletter.

Zach Witkoff, another co-founder and son of Trump Middle East envoy Steve Witkoff, described the suit as “a desperate attempt to deflect attention from Sun’s own misconduct” and said World Liberty “looks forward to getting the case thrown out promptly.”

Sun filed his complaint on Tuesday in the Northern District of California, alleging that WLFI operators used an embedded smart contract blacklist function to freeze roughly his 4 billion WLFI tokens, strip his governance voting rights, and threaten to permanently burn his holdings. The lawsuit claims the freeze was used as leverage to pressure Sun into continuing to invest and to mint the project’s USD1 stablecoin on terms he found unacceptable. Sun also alleges in the filing that “World Liberty is on the verge of collapse” and raises doubts about whether the project holds sufficient reserves to back USD1.

Sun’s lawsuit alleges World Liberty blamed him privately for a 40% WLFI price crash on September 1, 2025, the first day tokens became tradable, and accused him of short-selling perpetual futures and acting as a straw purchaser, allegations Sun’s filing disputes as unsupported. The complaint notes that Sun invested $30 million in WLFI in 2024 partly because of the Trump family’s association with the project, and built his position to approximately $75 million before the dispute escalated.

Sun, who settled separate SEC fraud charges for $10 million in March 2026, maintained in a post on X that the lawsuit targets specific project operators, not President Trump himself.