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SEC Revamps Lawsuit Against Tron Founder, “Extensive Travel” Sparks Jurisdiction Claim – Crypto News

Published

2 years ago

April 19, 2024

Dripp

The United States Securities and Exchange Commission (SEC) has recently made amendments to its lawsuit against Justin Sun, the prominent figure behind Tron. The SEC alleges that Sun was involved in the sale of unregistered securities through Tron (TRX) and BitTorrent (BTT) tokens.

The regulatory body asserts its jurisdiction over Sun due to his extensive presence within the United States, where he spent over 380 days between 2017 and 2019. These visits included key cities like New York City, Boston, and San Francisco. Furthermore, the SEC has included Sun’s affiliated entities, such as the Tron Foundation and the BitTorrent Foundation, in the lawsuit, claiming they were under his control.

SEC Accuses Justin Sun of Engaging in Manipulative Money Laundering Transactions

In its updated complaint, the SEC restates its allegations against Justin Sun, focusing on the sale of unregistered securities and alleged involvement in manipulative wash trading. The SEC contends that Tron (TRX) and BitTorrent (BTT) tokens were actively promoted and sold to investors in the United States, contradicting Sun’s claims of overseas transactions.

Specifically, the SEC points to purported wash trading activities on the Seattle-based crypto exchange Bittrex as evidence against Sun. These accusations form a significant part of the SEC’s case against the Tron founder and his associated businesses.

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Justin Sun Challenges SEC’s Jurisdiction Claim, Denies Allegations

In response to the SEC’s jurisdictional claim, Justin Sun has vehemently denied the allegations. Sun argues that the token sales were conducted entirely outside the United States and did not target the U.S. market. He maintains that the SEC lacks authority to assert jurisdiction over him or the Singapore-based Tron Foundation, emphasizing that the alleged securities violations occurred beyond U.S. borders.

Despite the ongoing legal battle, Sun’s legal team has yet to provide a formal response to requests for comment. This dispute highlights the complex legal issues surrounding jurisdiction and allegations within the cryptocurrency industry.

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