While the SEC continued its pressure on the cryptocurrency industry, it also filed a lawsuit against Binance and its founder CZ, as well as Tron founder Justin Sun.
The SEC has made a new claim in this lawsuit against Justin Sun, accusing Sun of selling unregistered securities through Tron (TRX) and BitTorrent (BTT) tokens.
While Justin Sun's lawyers requested the dismissal of the case on the grounds that the SEC did not have authority over the Singapore-based Tron Foundation, the SEC made a new move against this request and argued that Sun “traveled extensively” in the USA.
The SEC alleges that “at this point, Sun traveled within the United States for a total of at least 380 days between 2017 and 2019 and knowingly engaged in business in the United States, thus placing Tron and two other businesses within its jurisdiction.”
Justin Sun's response to these allegations of the SEC was not delayed. Opposing the SEC's authority claim, Sun argued that the TRX and BTT token sales were carried out entirely outside the United States and were not aimed at the US market.
Justin Sun states that the SEC does not have jurisdiction over him or the Singapore-based Tron Foundation, emphasizing that the securities violations alleged by the SEC occurred outside the borders of the United States.
*This is not investment advice.