In a new document, the U.S. SEC explained why it could pursue Tron Founder Justin Sun.
An adjusted lawsuit filed against Sun by the SEC asserted that his numerous trips to the US triggered legal proceedings. According to the SEC’s revised filing, Sun stayed in the US for over 380 days between 2017 and 2019. Additionally, the commission suspects Sun engaged in manipulative wash trading activities within the TRX secondary market.
Sun’s business trips included major cities such as New York, Boston, and San Francisco. According to the SEC, entrepreneurs with controlled companies purposefully took actions in the United States directed against them.
In the year 2019, while Sun was on his business travels to the USA, he visited several cities such as New York City, Boston, Massachusetts, and San Francisco. Rainberry secured an apartment that Sun utilized during some of his American business trips.
SEC statement
The initial TRX token wash trading lawsuit mentioned an unidentified platform. However, the Securities and Exchange Commission (SEC) has now explicitly stated that it refers to the Bittrex cryptocurrency exchange.
Based on the SEC’s report, Sun took a direct role in the process of listing TRX on the platform in 2018. He not only communicated with the team regarding this matter, but also personally signed numerous documents concerning the company’s characteristics.
The department argued that Bittrex being located in the US granted them jurisdiction over the defendants. In August 2023, Bittrex and its leader settled with the SEC, agreeing to pay a $24 million fine. Prior to this settlement, Bittrex had unsuccessfully contested the SEC’s ability to regulate cryptocurrencies.
In March 2023, Sun and three related businesses were charged by the regulatory body for selling unregistered securities as Tron and BitTorrent tokens.
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2024-04-19 17:34