The US Securities and Exchange Commission dropped its legal action against businessman Justin Sun, settling the case with a $10 M fine. In a letter to the Manhattan federal court, the regulator stated that Sun’s company, Rainberry, will pay this amount, while the agency will drop all claims against him, the Tron Foundation, and the BitTorrent Foundation.
“I am very pleased to confirm that the SEC has moved to dismiss all claims against me, Tron Foundation, and BitTorrent Foundation. Today’s resolution brings closure, but I never stopped building. I look forward to working with the SEC to develop crypto regulations. The future is bright,” Sun said.
Filed in March 2023, the lawsuit accused Sun, Rainberry, the Tron Foundation, and the BitTorrent Foundation of selling unregistered securities via TRX and BTT tokens. Officials also charged them with manipulative TRX wash trading, which artificially inflated trading volumes.
The SEC alleged that Sun and his companies orchestrated a scheme to pay celebrities for promoting TRX and BTT.
Sun denied the accusations and pushed to dismiss the case, arguing that the SEC applied US laws to activities that predominantly took place overseas.