Billionaires Clash Over Giacometti Sculpture Reveals Secrets of the Hidden Art Market

The private world of billionaire art collectors rarely plays out in public. However, an ongoing dispute between two prominent figures over a Giacometti sculpture has unveiled a rarely seen glimpse into a secretive global market marked by unlicensed intermediaries, multimillion-dollar informal agreements, and pervasive confidentiality.

Chinese cryptocurrency entrepreneur Justin Sun and American entertainment mogul David Geffen are locked in a legal battle in a New York federal court, each asserting rightful ownership of Alberto Giacometti’s bronze and steel sculpture “Le Nez” (“The Nose”). This dispute spans multiple continents, with Mr. Sun alleging that a deceitful adviser secretly sold the piece, while Mr. Geffen accuses Mr. Sun of fabricating the claim due to regrets over the original sale.

Complicating matters is the involvement of an agent whose status remains unclear, with reports suggesting she may be detained in China.

At a 2021 auction in New York, Mr. Sun, founder of the Tron crypto platform based in Singapore, acquired “Le Nez” for $78.4 million. The midcentury sculpture, crafted from bronze, steel, and iron, depicts a head suspended in an open cage, distinguished by its notably elongated nose.

Mr. Geffen purchased the sculpture last year while it was on loan to the Giacometti Institute in Paris.

Earlier this year, Mr. Sun filed a lawsuit claiming that the adviser who sold the sculpture to Mr. Geffen—exchanging it for $10.5 million and two unnamed paintings—acted without his consent, allegedly forging documents and inventing a fictitious Chinese lawyer to facilitate the transaction. This adviser had previously been publicly linked to Mr. Sun and his art acquisitions, even discussing her role in advising him on bids for Giacometti and other artworks.

In response, Mr. Geffen initiated a countersuit last month, accusing Mr. Sun of fabricating a false narrative regarding the adviser’s unauthorized sale. According to Mr. Geffen, Mr. Sun is experiencing “seller’s remorse” after failing to secure desired offers for the paintings included in the deal.

Mr. Sun’s legal team recently asserted that Mr. Geffen is “fundamentally mistaken” and should instead pursue legal action against the adviser, who they report has been detained in China since February in connection with admitted fraud and theft—claims that remain unverified independently.

William Charron, an attorney representing Mr. Sun, described Mr. Geffen’s allegations as “desperate and unfounded,” accusing him of clinging to a “falsehood” that the adviser was not involved in wrongdoing.

The question of whether theft occurred is pivotal but may not ultimately determine ownership, according to art law experts. If the adviser acted without authorization, Mr. Sun could be recognized as the legitimate owner. Conversely, Mr. Geffen might retain possession if his reliance on the adviser’s representations is deemed reasonable.

Joshua Kaufman, an experienced art lawyer based in Washington, D.C., remarked, “Having spent decades in the art world, I’ve witnessed countless opaque transactions. This business operates unlike any other. Either party’s account could be accurate.”

Jana Farmer, an art attorney in New York, noted the numerous disputed facts and acknowledged that Mr. Sun faces an “uphill battle” in court.

The voluminous legal filings reveal stark contradictions: Mr. Sun alleges the adviser was an independent freelancer orchestrating an elaborate deception, while Mr. Geffen claims Mr. Sun has attempted to erase messages and evidence online.

The only apparent consensus is that the paintings exchanged in the 2024 transaction remain confidential, likely to protect their market value from being affected by the ongoing dispute over the sculpture, experts suggest.

At 34, Mr. Sun is no stranger to controversy both within and beyond the art scene. He garnered attention last year with a $6.2 million purchase of a conceptual artwork featuring a banana taped to a wall, positioning himself as a challenger to conventional valuations.

In 2023, the U.S. Securities and Exchange Commission accused Mr. Sun and Tron of artificially inflating the price of their cryptocurrency tokens. He also faced criticism for spending $75 million late last year on crypto tokens linked to Donald Trump, actions perceived by some as attempts to influence the former president’s legal case, allegations Mr. Sun has denied. The case was paused earlier this year at the government’s request.

Mr. Geffen, now 82, is a veteran collector who began amassing art long before Mr. Sun’s rise. The lawsuit challenges not only his ownership of “Le Nez” but also his esteemed reputation as a discerning collector, Ms. Farmer said, suggesting the case tests his credibility.

Ms. Farmer anticipates the two billionaires will likely settle their highly public dispute, offering only a brief window into a typically secretive and enigmatic market before the curtain falls again.