Resurfaced Arrest Video Draws Scrutiny as WLFI, Justin Sun Clash

Body-camera footage from New Year’s Day 2022 showing WLFI co-founder Zach Witkoff’s arrest outside the E11EVEN nightclub in Miami resurfaced online and has coincided with a separate legal dispute involving the company.

The footage shows officers detaining Witkoff after an incident that began when his father, real estate investor Steve Witkoff, was denied entry and confronted venue security. Officers conducted a search at the scene and reported recovering a bag of cocaine. Police charged Zach Witkoff with disorderly conduct, resisting arrest and felony possession at the time.

In the video, Witkoff gives different explanations, at times saying he was helping a friend, at other times denying ownership of the substance and saying he had been assaulted. Officers are recorded warning him not to resist. A security guard in the clip dismisses Witkoff’s reference to connections with the club’s ownership. Court records show Witkoff posted bond and entered a not-guilty plea. Prosecutors initially pursued the case; the felony cocaine charge and one count of resisting arrest were later dismissed. Public filings tied to the resurfaced footage do not fully detail the remaining case status.

The video’s circulation coincided with an escalation in litigation between World Liberty Financial and crypto entrepreneur Justin Sun. Sun’s complaint alleges WLFI froze about 4 billion WLFI tokens that he had acquired and sought to influence how he handled those holdings. The filing says WLFI co-founder Chase Herro warned Sun that failing to meet certain demands could prompt a governance vote to eliminate his tokens.

The complaint contends those actions were part of efforts to secure additional capital for company operations, including plans to mint a USD 1 stablecoin, and alleges WLFI threatened to report Sun to authorities over unspecified compliance concerns. Sun previously reached a $10 million settlement with the U.S. Securities and Exchange Commission without admitting or denying wrongdoing.

Sun’s filing also asserts WLFI attempted to limit large token sales to support price stability and blamed him for contributing to a decline in WLFI’s market value. The dispute has prompted public discussion on social platforms; a post by Eric Trump on X dismissed the lawsuit, while members of the crypto community and at least one OKX partner questioned WLFI’s influence and the financial ties associated with the project.

The combination of the resurfaced arrest footage and the ongoing litigation has focused renewed attention on Witkoff, WLFI’s governance decisions and disputes between the company and token holders as legal processes continue.