3 - 4 minute read
Justin Sun, the founder of Tron, has been issued a summons by a United States court in connection with an SEC civil case over allegations of securities law violations. Sun and the Tron Foundation have been accused of orchestrating the unregistered offer and sale, manipulative trading, and unlawful touting of Tron (TRX) as a crypto asset security. The SEC claims Sun engaged in manipulative wash trading and helped drive public interest in TRX and BitTorrent (BTT) with the help of celebrities such as Soulja Boy, Lindsay Lohan, Jake Paul, and Akon. All celebrities allegedly involved in the scheme had settled with the regulator except for Austin Mahone and Soulja Boy.
Sun’s location is unclear as his Twitter bio showed his location as Switzerland, and social media activity suggested he had recently been in Hong Kong. The Tron co-founder was reportedly born in China and claims citizenship in Grenada, while the Tron Foundation was established in Singapore in 2017.
The U.S. District Court for the Southern District of New York has given Sun 21 days to respond. Failure to respond will result in a judgment by default, indicating that penalties related to the alleged securities law violations will be imposed. The SEC has announced plans to permanently prohibit Sun from acting as an officer or director of any firm offering crypto securities should it prevail in the case.
Arrived HK 🇭🇰 pic.twitter.com/8PgKsCrDeQ
— H.E. Justin Sun 孙宇晨 (@justinsuntron) April 11, 2023
Traders should be aware that the SEC is taking a strong stance against alleged securities law violations in the crypto space. They should remain cautious when investing in crypto assets and conduct thorough research before making any investment decisions.
Traders should recognize that this case has the potential to impact the price of Tron (TRX) and BitTorrent (BTT). The market may react negatively to any unfavorable outcomes in the case, resulting in lower prices for these assets. Conversely, any positive outcomes may lead to a resurgence in interest and a rise in prices.
The Bottom Line
Justin Sun and Tron Foundation have been accused of securities law violations. The SEC has issued a summons to Sun, and failure to respond within 21 days will result in a default judgment. While the case is ongoing, traders should remain cautious and perform rigorous research before investing in Tron (TRX) and BitTorrent (BTT). The outcome of the case has the potential to impact the crypto market, and traders should remain alert to any news related to it.
