US SEC Files Amended Complaint Against Justin Sun and Defendants, Citing Alleged Visits to US

The US Securities and Exchange Commission (SEC) is ramping up its case against Justin Sun and other defendants, filing an amended complaint on April 18 that could have far-reaching implications for the cryptocurrency industry.

The regulator alleges that Sun, the founder of the Tron Foundation and the BitTorrent Foundation, made numerous trips to the US between 2017 and 2019 while his companies carried out unregistered offers and sales of BTT and TRX tokens. These visits, totaling over 380 days and including stops in major cities like New York City and San Francisco, are being used by the SEC to claim jurisdiction over Sun and the companies.

One of the key allegations in the amended complaint is a wash trading scheme that Sun and the companies allegedly engaged in on the now-defunct crypto exchange Bittrex. The SEC specifically named Bittrex in this latest filing, citing its US base as further justification for pursuing legal action.

Sun had previously sought to dismiss the SEC case in March, arguing that he was not subject to US jurisdiction as a foreign national. However, the latest allegations directly address these concerns and could bolster the SEC’s case against him.

This development comes on the heels of the SEC’s separate lawsuit against Bittrex in April 2023, which was settled in August of the same year. The exchange ceased operations globally later in 2023, underscoring the regulatory crackdown on illicit activities in the cryptocurrency space.

As the legal battle between the SEC and Justin Sun continues to unfold, the outcome could have significant implications for the future of cryptocurrency regulation in the US and beyond. Stay tuned for further updates on this developing story.