SEC Files Amended Complaint Against Tron Founder Justin Sun
The United States Securities and Exchange Commission (SEC) has filed an amended complaint in its ongoing lawsuit against Tron founder Justin Sun, asserting “personal jurisdiction” over him and his associated companies due to their activities directed towards the US.
Summary of Amended Complaint
- The SEC amended its lawsuit against Justin Sun, claiming jurisdiction over him and his companies due to their actions in the US.
- Sun spent over 380 days in the US between 2017 and 2019 for business trips on behalf of the Tron Foundation, BitTorrent Foundation, and Rainberry.
- The SEC alleges that TRX and BTT tokens were promoted and sold to consumers in the US, with wash trades on Bittrex.
- Sun sought to dismiss the suit in March, arguing that the SEC had no jurisdiction, but the amended complaint addresses his US travels and personal communication with Bittrex.
Allegations in the Amended Complaint
The amended complaint filed on April 17 states that Sun and his companies purposefully directed actions towards the US. Sun’s extensive travel to the US for business trips in major cities played a significant role in the SEC’s case. The regulator alleges that Sun spent more than a year in the US between 2017 and 2019, promoting tokens and engaging in business activities.
The SEC reiterates its previous claims that unregistered securities were sold through TRX and BTT tokens, with Sun’s involvement in manipulative wash trading. The regulator points out that these tokens were marketed to US consumers and investors, strengthening its argument for jurisdiction in the case.
Sun’s attempt to dismiss the suit in March focused on the tokens being sold overseas, avoiding the US market. However, the amended complaint highlights Sun’s direct engagement with US-based exchanges, like Bittrex. This communication between Sun and Bittrex further supports the SEC’s argument for jurisdiction based on his activities in the US.
Implications of the Amended Complaint
If the court accepts the SEC’s argument for jurisdiction based on Sun’s US visits and involvement in token sales to US investors, it could have significant implications for future regulatory actions in the crypto space. Establishing a precedent for holding individuals and companies accountable for activities directed towards the US could impact how regulators approach similar cases in the future.
Hot Take: What’s Next for Justin Sun and Tron?
Considering the SEC’s amended complaint and the focus on Sun’s activities in the US, it remains to be seen how the case will proceed. If the court upholds the regulator’s jurisdiction claim, it could have far-reaching consequences for Sun and the entities involved. Stay tuned for further developments in this ongoing legal battle.
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