According to breaking news, the SEC has reached a settlement with Justin Sun and Tron after previously suspending the case.
Cryptocurrency entrepreneur Justin Sun has settled his civil fraud case with the SEC with a $10 million settlement.
Under the announced agreement, payment will be made by one of Sun’s companies, and court approval will be required for the settlement to take effect. According to a letter sent by the SEC to U.S. District Judge Edgardo Ramos in Manhattan, Sun and its companies neither pleaded guilty nor denied any wrongdoing as part of the settlement.
Sun stated on social media platform X, “I am pleased to confirm that the SEC has taken action to drop all allegations it brought against me, the Tron Foundation, and the BitTorrent Foundation. Today’s resolution brings the process to a close.”
The SEC filed charges against Sun and his companies, Tron Foundation, BitTorrent Foundation, and Rainberry, in March 2023. The agency alleged that Sun organized the illegal distribution of the crypto assets Tronix (TRX) and BitTorrent (BTT), artificially inflated transaction volume, and concealed promotional payments to celebrities.
Allegedly, Sun generated approximately $31 million in revenue by executing hundreds of thousands of transactions between the two accounts he controlled, creating the impression that there was genuine trading demand in the market.
The SEC also alleged that Sun worked with several celebrities to promote TRX and BTT on social media, but concealed the fact that these individuals were paid. These celebrities included actress Lindsay Lohan, singers Akon and Ne-Yo, and social media phenomenon Jake Paul.
*This is not investment advice.