SEC and Justin Sun Request Stay Order to Settle Civil Fraud Lawsuit
The SEC and Justin Sun, founder of Tron, are moving towards settling a civil fraud lawsuit involving allegations of unregistered sales of TRX and BTT, market manipulation, and undisclosed celebrity endorsements. Both parties have requested a stay order from the Southern District Court of New York to pause the legal proceedings, indicating a potential resolution to the case.
- The SEC's recent trend includes dropping lawsuits against several crypto firms, suggesting a shift in enforcement strategy.
- Charges against Sun were filed in March 2023, alleging unregistered crypto asset sales and market manipulation through wash trading.
- The lawsuit accused Sun of paying celebrities to promote TRX and BTT without disclosure, violating securities regulations.
- Sun's defense claimed that the SEC lacked jurisdiction; however, the SEC amended its complaint with evidence of U.S. connections.
- In October 2024, a request to dismiss a related class-action lawsuit by TRX investors was rejected.
The SEC's actions imply a readiness to resolve significant cases against key figures in crypto, possibly marking a transition from aggressive litigation to more pragmatic resolutions. This may influence how future crypto-related legal issues are approached and could set important precedents for regulation in the digital asset space.