The US Securities and Exchange Commission (SEC) has bolstered its lawsuit against Tron founder Justin Sun by highlighting his extensive visits to the US, totaling over 380 days between 2017 and 2019. The amended complaint alleges that Sun's presence in the US, along with business dealings through entities like the Tron Foundation and Rainberry, established jurisdiction for the case. The SEC contends that Sun sold unregistered securities, including TRX and BTT tokens, within US borders and engaged in manipulative practices like wash trading on a US-based exchange.
SEC Strengthens Case Against Justin Sun, Citing Extensive US Visits
Manhattan, New York - April 19, 2024 - The United States Securities and Exchange Commission (SEC) has significantly bolstered its lawsuit against Tron founder Justin Sun, alleging manipulative practices and unregistered security sales. In an amended complaint filed in a Manhattan federal court, the SEC highlights Sun's extensive travel within the United States, highlighting his connections to the country's financial markets and establishing jurisdiction in the case.
The amended complaint includes detailed accounts of Sun's visits to the United States from 2017 to 2019, totaling over 380 days. During these trips, Sun visited major cities such as New York City, Boston, and San Francisco, conducting business for various entities, including the Tron Foundation, the BitTorrent Foundation, and Rainberry. The SEC asserts that these firms are closely tied to Sun and serve as his "alter ego" companies.
The SEC alleges that Sun used these visits to promote and sell unregistered securities, primarily the Tron (TRX) and BitTorrent (BTT) tokens. The regulator also accuses Sun of engaging in manipulative practices, such as wash trading TRX tokens on Bittrex, a Seattle-based cryptocurrency exchange.
The amended lawsuit emphasizes that TRX and BTT tokens were marketed and sold to individuals and investors within the United States, coinciding with Sun's travels. This claim strengthens the SEC's argument that Sun purposefully engaged with the US market, bringing his activities under the SEC's regulatory authority.
Sun has previously argued that the token sales were conducted entirely overseas and were structured to exclude US markets. However, the SEC maintains that these measures were insufficient to evade US jurisdiction.
The case has attracted significant attention due to Sun's status as a Chinese-born Grenadian citizen and his arguments against the SEC's extraterritorial application of US securities laws. The crypto community and legal experts are closely monitoring the case's developments, which could have implications for international cryptocurrency operations and the reach of US regulatory authority.
Sun's legal representatives have not yet commented on the latest developments in the lawsuit. The case continues to unfold, and the SEC's amended complaint represents a significant step in establishing its jurisdiction and alleging manipulative practices by the Tron founder.
