SEC Doubles Down on Jurisdiction in Amended Tron Lawsuit

The SEC has amended its lawsuit against Tron founder Justin Sun, asserting personal jurisdiction over Sun and his businesses due to his extensive travel within the US from 2017-2019, during which he allegedly promoted and sold unregistered securities through the Tron (TRX) and BitTorrent (BTT) tokens.

SEC Reasserts Jurisdiction in Amended Lawsuit Against Tron Founder Justin Sun

In a decisive move to strengthen its case against Justin Sun, the founder of the Tron blockchain platform, the United States Securities and Exchange Commission (SEC) has amended its lawsuit, asserting personal jurisdiction over Sun and the entities he controls. This amended complaint underscores the SEC's determination to hold accountable those allegedly involved in illegal securities offerings.

The SEC alleges that Sun's extensive presence in the United States over a period of three years, spanning 2017 to 2019, provides ample grounds for personal jurisdiction. During this time, Sun reportedly visited key U.S. cities, including New York City, Boston, and San Francisco, on business trips on behalf of the Tron Foundation, the BitTorrent Foundation, and Rainberry, all named in the suit as entities controlled by Sun.

The SEC maintains that these trips were not mere personal visits but deliberate actions directed towards the United States. The amended complaint highlights that the promotion, offering, and sale of TRX and BTT tokens, the core of the alleged securities violations, occurred during Sun's extensive travels within the country. Furthermore, the SEC alleges that Sun's manipulative wash trading activities took place on the Seattle-based crypto exchange Bittrex, further solidifying the nexus between his alleged misconduct and the United States.

In response to Sun's previous motion to dismiss the suit, the SEC robustly defends its authority to apply U.S. securities laws in this case. The amended complaint emphasizes that the TRX and BTT tokens were actively promoted, offered, and sold to "consumers and investors located in the United States." This assertion directly refutes Sun's claim that the token sales were conducted solely overseas and deliberately avoided the U.S. market.

The SEC's determination to pursue this case underscores its commitment to safeguarding investors and ensuring a fair and transparent securities market. By asserting personal jurisdiction over Sun and his related entities, the SEC demonstrates its resolve to hold accountable those who allegedly violate U.S. securities laws.

Despite repeated requests for comment, Sun's legal representatives have not yet issued a response to the amended lawsuit. The developments in this case will be closely monitored, as it has implications for the regulation of cryptocurrency and the authority of the SEC in prosecuting alleged securities violations involving foreign actors.