It is reported that the U.S. Securities and Exchange Commission (SEC) is considering suspending its civil fraud action against TRON founder Justin Sun in order to investigate a possible agreement. This action may be advantageous to everyone involved, including the general public.
The SEC’s case centers on claims that Sun and his businesses airdropped BTT tokens to American investors who already possessed TRX in their wallets or on particular exchanges. They also accuse Sun of “wash trading,” which entails artificially increasing the market activity and liquidity of these tokens.
The SEC claims that Sun sold TRX and BTT as unregistered securities through “bounty programs.” These initiatives encouraged individuals to promote the tokens on social media and create BitTorrent accounts in return for TRX and BTT.
According to Reuters, attorneys for both Sun and the SEC have requested a halt in the case, indicating a progress update within 60 days.
The SEC claims that between April 2018 and February 2019, Sun ordered workers to conduct over 600,000 TRX wash trades utilizing accounts he controlled. These trades included a daily volume of 4.5 million to 7.4 million TRX, all aimed at manipulating the market. Sun allegedly provided the TRX for this scheme and profited $31 million by selling TRX on the secondary market. TruBit Collaborates with Morpho to Introduce DeFi Unearned Revenue in Latin America
The lawsuit, filed in March 2023, accuses Sun and his companies of unlawfully offering TRON (TRX) and BitTorrent (BTT) tokens, as well as artificially inflating TRX trading volumes.
Sun is also accused of hiring celebrities to promote the tokens without revealing that they were paid to do so.
The U.S. Securities and Exchange Commission (SEC) has initiated legal actions against eight prominent personalities, such as Lindsay Lohan, Akon, and Austin Mahone, for illicitly advertising TRX and/or BTT without revealing the remuneration they obtained for these promotions, nor the precise sums.
Before this, Justin Sun was embroiled in a legal conflict, with the blockchain platform Chain contemplating legal proceedings against him. This stemmed from Sun’s allegations that the firm was engaged in market manipulation of Onyxcoin (XCN) – a claim that appears highly paradoxical given the SEC’s accusations against Sun.
Sun presented these accusations in a January 24th piece, alleging that Chain was employing significant leverage and potentially damaging exchange users’ agreements. He cautioned cryptocurrency exchanges to exercise prudence and declared he would report Chain’s purported unlawful actions to the SEC and DOJ. In reply, Chain contested Sun’s accusations, asserting that it does not engage in the trading of its XCN and that the XCN token is overseen by OnyxDAO. Afterward, Sun restated his accusations, this time concentrating on OnyxDAO and encouraging regulatory bodies to probe.
