SEC Files Amended Complaint Against Tron Founder Justin Sun
The U.S. Securities and Exchange Commission (SEC) has filed an amended complaint in its lawsuit against Tron founder Justin Sun, alleging that his frequent travels to the U.S. have made the case fall under the country’s jurisdiction. The SEC pointed out several instances where Sun spent considerable time in the U.S. over the course of three years, engaging in business trips and residing in an American apartment rented by a company involved in the lawsuit.
SEC Charges Against Sun and His Companies
- In March 2023, the SEC charged Sun and his companies, including Tron Foundation Limited, BitTorrent Foundation Limited, and Rainberry Inc, with offering unregistered securities in the form of TRX and BTT cryptocurrencies.
- The lawsuit also accused Sun and his companies of manipulating the secondary market for TRX through extensive wash trading practices.
Allegations of Celebrity Endorsements
- The SEC also claimed that Sun orchestrated a scheme to pay celebrities such as Lindsay Lohan, Jake Paul, and Soulja Boy to promote TRX and BTT without disclosing their compensation.
- Sun has vehemently denied these allegations, stating that the SEC’s lawsuit lacks merit and is part of a pattern of targeting prominent figures in the blockchain and crypto industry.
Last month, Sun and the Tron Foundation sought to have the SEC’s lawsuit dismissed, arguing that the regulatory agency was overreaching its jurisdiction by attempting to apply U.S. securities laws to predominantly foreign activities. However, the SEC maintains that Sun and his companies purposefully targeted U.S. investors with their promotions and trading practices.
Tron’s Response Amid Lawsuit
Despite the ongoing legal battle, Tron recently announced the release of “The Tron Anthem,” an orchestral piece inspired by Justin Sun and composed by renowned artist Hans Zimmer. The lawsuit does not seem to have dampened Sun’s enthusiasm for promoting his blockchain projects.
Hot Take: The Verdict on Justin Sun’s SEC Lawsuit
In the wake of the SEC’s amended complaint against Justin Sun and his companies, the crypto community is closely watching the outcome of this high-profile case. As one of the most well-known figures in the blockchain industry, Sun’s legal troubles could have far-reaching implications for the regulation of cryptocurrencies and the promotion of blockchain projects.
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