Summary
- The US Securities and Exchange Commission (SEC) said all securities-law claims it had brought against Justin Sun, the Tron Foundation and the BitTorrent Foundation were dismissed.
- It added that the related entity Rainberry was ordered to pay the SEC a $10 million civil penalty.
- It said the defendants agreed to the SEC settlement terms without admitting or denying the allegations, and agreed not to engage in deceptive market practices related to securities going forward.
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The US Securities and Exchange Commission (SEC) abruptly dropped a securities-law lawsuit it had brought against Tron (TRX) founder Justin Sun.
According to the final ruling issued on the 5th (local time) by the US District Court for the Southern District of New York, all allegations the SEC filed in 2023 against Sun, the Tron Foundation and the BitTorrent Foundation were dismissed.
However, Rainberry (formerly BitTorrent), another entity tied to Sun, was ordered to pay the SEC a $10 million civil penalty. Rainberry is the company that, under Sun’s leadership, developed the BitTorrent protocol and the BitTorrent (BTT) crypto token.
In 2023, the SEC charged Sun and three affiliated entities, alleging they illegally sold TRX and BTT tokens as unregistered securities. At the time, the SEC also alleged that Sun manipulated TRX prices through so-called wash trading and directed celebrities to promote the tokens while concealing that they had been paid.
In the ruling, the defendants agreed to the SEC’s settlement terms without admitting or denying the allegations. In addition to paying the penalty, Rainberry agreed—without admitting wrongdoing—not to engage in deceptive market practices involving securities going forward.
Doohyun Hwang
cow5361@bloomingbit.ioKEEP CALM AND HODL🍀
