SEC Amends Tron Lawsuit Against Justin Sun: Alleges Extensive U.S. Travel for Work
The United States Securities and Exchange Commission (SEC) has made amendments to its lawsuit against Tron founder Justin Sun, accusing him of extensive travel to the U.S. for work related to his crypto companies. The SEC alleges that Sun, along with the Tron Foundation, the BitTorrent Foundation, and Rainberry, violated federal law by offering and selling unregistered securities in the form of Tronix (TRX) and BitTorrent (BTT) tokens.
In response to the SEC’s claims, Sun has challenged the agency’s jurisdiction, arguing that it is overstepping its authority by attempting to prosecute him for predominantly foreign conduct. The lawsuit also implicates celebrities such as Lindsay Lohan, Jake Paul, and Austin Mahone for allegedly promoting TRX and BTT without disclosing their compensation.
This legal battle comes at a time when the SEC is facing criticism for its regulatory approach to the cryptocurrency industry. Critics argue that the SEC’s “regulation-by-enforcement” strategy lacks a clear regulatory framework for cryptocurrencies and instead relies on legal action against industry players. Under Chair Gary Gensler, the SEC has pursued lawsuits against major crypto entities like Coinbase, Ripple, and Binance for alleged violations of federal securities laws.
Despite pushback, the SEC shows no signs of slowing down its crackdown on the crypto industry. Gensler has outlined the commission’s agenda, which includes further equity market structure rules and additional cybersecurity regulations. The outcome of the lawsuit against Justin Sun and his crypto companies could have significant implications for the future regulation of cryptocurrencies in the U.S.
