SEC Files Amended Suit against Justin Sun and ‘Alter Ego’ Firms

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An updated lawsuit brought by the United States Securities and Exchange Commission (SEC) against Justin Sun, founder of Tron, was filed. This legal action comes after Sun attempted to have the initial case dismissed in March based on arguments that the SEC lacked authority over the matter.

The SEC asserts that during the reviewed period, Justin Sun and his associated businesses not only traveled extensively within the US but also actively conducted business operations in the country. This, according to the SEC, grants them the authority to take legal action against Sun, Tron, and the two other companies tied to him.

In an updated document submitted to a federal court in Manhattan, the SEC asserts that Sun spent at least 380 days in the United States during the years 2017-2019. He is believed to have been in the country for these extended periods to attend business engagements in cities such as Boston, San Francisco, New York City, and Massachusetts. While doing so, Sun reportedly represented both the Tron Foundation and his affiliated companies – BitTorrent Foundation and Rainberry.

In the interim, it’s important to mention that the accusations brought forth in the initial lawsuit have not been altered. The Securities and Exchange Commission (SEC) maintains that Sun and his businesses illegally sold unregistered securities via the Tron (TRX) and BitTorrent (BTT) tokens. Furthermore, the SEC claims Sun engaged in “manipulative wash trading” on the crypto exchange Bittrex based in Seattle.

Justin Sun Counters SEC

Previously stated, Sun requested the court to throw out SEC’s lawsuit in late March. He, a Chinese-born Grenadian national, contended that the SEC was attempting to enforce US securities regulations on “primarily foreign actions.” In the court, Sun asserted that the SEC held no jurisdiction over him or the Singaporean Tron Foundation.

Sun argued that the sales of TRX and BTT tokens took place exclusively outside the United States, with a deliberate attempt made to keep them away from the US market. He further highlighted that the Securities and Exchange Commission (SEC) did not assert that these tokens were first offered or sold to any American residents.

At the time this article was released, neither Sun nor his legal team have made any public comments regarding the revised complaint.

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2024-04-19 12:17