WLFI co-founder arrest video adds drama to legal dispute with Justin Sun

WLFI co-founder Zach Witkoff is facing fresh public attention after body camera footage from a 2022 arrest resurfaced online.

The video, recorded outside the E11EVEN nightclub in Miami on New Year’s Day 2022, shows Witkoff being detained by police. Its revival has coincided with growing concern over the company’s internal disputes and legal challenges.

Arrest footage draws renewed attention to WLFI co-founder

The resurfaced footage shows the WLFI co-founder interacting with officers during the arrest. The incident also involved his father, Steve Witkoff, who was denied entry to the venue, leading to a dispute with security staff. 

Officers carried out a search during the incident and reported finding a bag of cocaine. Following the incident, the authorities charged Zach Witkoff with disorderly conduct, resisting arrest, and felony possession at the time.

In the footage, Witkoff offers varying explanations, stating at one point that he was helping a friend, before later saying the substance was not his. He also claimed he had been assaulted and denied wrongdoing.

As officers attempted to manage the situation, they warned him not to resist. During the exchange, Witkoff referenced connections to the nightclub’s ownership, naming Marc Roberts. A security guard responded by dismissing the comment.

Court records later showed that Witkoff posted bond and entered a not guilty plea. Prosecutors initially pursued the case; however, the felony cocaine charge and one count of resisting arrest were later dismissed.

WLFI co-founder lawsuit dispute with Justin Sun escalates

The timing of the video’s circulation comes as the WLFI co-founder faces indirect pressure from a lawsuit Justin Sun filed against World Liberty Financial. The complaint alleges that the company froze approximately 4 billion WLFI tokens acquired by Sun and attempted to influence his actions regarding those holdings.

According to the filing, co-founder Chase Herro warned Sun that failure to comply with certain demands could result in a governance vote that would eliminate his holdings. The lawsuit claims this formed part of an effort to secure additional capital contributions tied to the company’s operations, including the minting of its USD1 stablecoin.

The complaint further alleges that the company threatened to report Sun to authorities over unspecified compliance concerns. This occurred months before Sun reached a $10 million settlement with the U.S. Securities and Exchange Commission, without admitting or denying wrongdoing. Sun also argued that World Liberty Financial attempted to restrict large token sales to support price stability while accusing him of contributing to a decline in value.

Community response and ongoing legal developments

The dispute has extended into public exchanges, including responses from Eric Trump on X. Eric dismissed the lawsuit in a post, prompting replies from members of the crypto community. Others criticized the actions of the company, whereas others supported the stance of Sun.

One response by an OKX partner questioned the influence of the company citing allegations regarding financial benefits associated with the project. However, the released footage involving the WLFI co-founder has drawn additional attention at a time when legal and governance issues remain unresolved.

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