The ongoing legal battle between Tron and the United States Securities and Exchange Commission (SEC) has escalated, with Tron pushing for the case to be dismissed, arguing that the SEC's jurisdiction does not extend to its foreign operations.
Tron Challenges SEC Jurisdiction, Seeks Case Dismissed
In a bold move, the Tron Foundation, the organization behind the layer-1 blockchain Tron, filed a petition in New York federal court to dismiss the SEC lawsuit.
Tron claims that the SEC's attempt to enforce US securities laws predominantly on foreign activities has gone “too far” and emphasizes that the SEC is not a “world-class regulator.”
The lawsuit, filed last March, includes allegations against Tron founder Justin Sun, the Tron Foundation, and the BitTorrent Foundation, among others. The SEC accuses these individuals of conducting unregistered securities offerings through the sale of Tron (TRX) and BitTorrent (BTT) tokens.
Tron, headquartered in Singapore, maintains that the tokens are only sold overseas and are not marketed to US residents.
Tron also disputes the SEC's claim that secondary token sales on US-based platforms constitute unregistered securities, calling the claim “weak at best.”
Tron also disputes the SEC's allegations of manipulative trading and celebrity endorsements, stating that the SEC has failed to provide concrete evidence of wrongdoing or any identifiable victims.
Additionally, Tron criticizes the SEC's lawsuit for lacking specific factual allegations and relying on generalizations to support its claims.
The Foundation argues that the SEC's lawsuit should be dismissed under the material questions doctrine, which limits regulatory authority on certain matters.
*This is not investment advice.