SEC and Tron’s Justin Sun Move Toward Settlement in Civil Fraud Case
- SEC and Justin Sun seek settlement in the civil fraud case, requesting a stay order to pause legal proceedings.
- The lawsuit alleges unregistered TRX and BTT sales, market manipulation, and undisclosed celebrity promotions.
- This move aligns with the SEC's recent trend of ending crypto lawsuits, signaling a shift in its enforcement approach.
According to the latest court filing, the SEC and Tron founder Justin Sun have requested a stay order in their Civil fraud lawsuit.
Both parties are reportedly exploring a resolution or settlement, which would ultimately see the lawsuit dismissed.
SEC vs. Justin Sun Legal Battle Is About to End
Over the past week, the SEC has dropped several lawsuits and legal actions against crypto firms. Most notably, the commission has ended its lawsuit against Coinbase, and ended its investigation into Uniswap and Robinhood.Now, the federal agency is looking to settle one of its biggest lawsuits against Tron Founder Justin Sun.The latest court filing highlighted that both parties have requested a stay order from the Southern District Court of New York. A stay order would temporarily halt or suspend any further proceedings in a case.
The current events suggest that the commission will enter a settlement with Sun. This might incur some penalties for the Tron Founder, but more details are still under wraps.In March 2023, the SEC filed charges against Justin Sun and his companies—Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc. (formerly BitTorrent).
The SEC alleged that Sun and his entities engaged in the unregistered offer and sale of crypto asset securities, specifically Tronix (TRX) and BitTorrent (BTT).
Additionally, the SEC accused Sun of orchestrating a scheme to manipulate the secondary market for TRX through extensive wash trading.
Most notably, the lawsuit stated that Sun paid celebrities to promote TRX and BTT without disclosing their compensation, violating securities laws.
In response to these allegations, Sun’s legal team argued that the SEC lacked jurisdiction, claiming that the activities in question were conducted outside the United States.
However, in April 2024, the SEC amended its complaint, providing evidence that Sun had significant ties to the US.
Most recently, in October 2024, the US District Court denied a motion to dismiss a class-action lawsuit brought by TRX investors.
Overall, it seems like the SEC is ready to put these enforcement actions behind, as it’s loosening its grip on the crypto industry.
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