SEC Intensifies Scrutiny of Crypto Industry with Amended Complaint Against Tron Founder

The SEC is escalating its targeting of prominent figures in the crypto world. Following the departure of Changpeng Zhao from Binance, the SEC is now focusing on Justin Sun, the founder of Tron. The SEC alleges that Sun traveled extensively in the US during business trips, while Sun maintains that token sales occurred exclusively outside the country. Despite this, the SEC has renewed its accusations that Tron's Tronix (TRX) and BitTorrent (BTT) tokens were sold to US investors. Sun vehemently denies these allegations, asserting that the SEC lacks jurisdiction in this matter. The legal battle highlights the complexities of jurisdiction and regulatory authority in the realm of cryptocurrencies.

US Securities and Exchange Commission Intensifies Regulatory Scrutiny of Crypto Industry

Washington, D.C. - The United States Securities and Exchange Commission (SEC) has filed an amended complaint in its lawsuit against Tron inventor Justin Sun, alleging unregistered securities sales and manipulative trading practices.

The SEC alleges that Sun, along with two Tron-related entities, BitTorrent Foundation and Rainberry, engaged in willful acts within the United States during business trips undertaken between 2017 and 2019. Sun reportedly spent approximately 380 days in the country during this period.

The complaint asserts that Tron and BitTorrent tokens (TRX and BTT) were sold to investors in the US and that these sales were not registered with the SEC as required by federal securities laws. The SEC also alleges that Sun and the Tron-related entities engaged in "wash trading" on the Bittrex crypto exchange, artificially inflating the trading volume of the tokens.

Justin Sun has vehemently denied the allegations, claiming that the token sales occurred exclusively outside the US and that the SEC lacks jurisdiction over his actions. He has argued that the SEC is attempting to overreach by applying securities laws to predominantly foreign conduct.

The amended complaint is the latest development in the ongoing legal battle between the SEC and Sun. The agency had previously filed a lawsuit against Sun and the Tron-related entities in March 2021, alleging unregistered securities sales. Sun filed a motion to dismiss the lawsuit, arguing that the SEC lacked standing to bring the case.

The SEC's renewed allegations raise significant jurisdictional and legal questions regarding the regulation of cryptocurrency assets. The outcome of the case could have far-reaching implications for the industry and for investors.

The SEC's focus on Justin Sun is part of a broader effort to bring the cryptocurrency industry under regulatory scrutiny. The agency has recently taken enforcement actions against a number of crypto exchanges, including Coinbase and Binance.

Observers believe that the SEC's actions signal a heightened level of regulatory oversight in the cryptocurrency space. Companies and individuals operating in this market should carefully review their operations and ensure compliance with applicable laws.

To stay informed about the latest developments in this ongoing legal dispute and other regulatory actions in the cryptocurrency industry, investors are encouraged to follow credible sources of information, such as the SEC's website and official announcements.