The US Securities and Exchange Commission (SEC) has settled its civil fraud case against Tron (TRX) blockchain founder Justin Sun, ending legal proceedings that began in 2023.
As part of the settlement, one of Justin Sun’s companies will pay a $10 million civil penalty and the regulator will drop its claims against Sun and several related entities.
End of Justin Sun Case
The SEC originally filed a complaint in March 2023 against Sun and his companies, including Tron Foundation, BitTorrent Foundation and Rainberry. The agency alleged that Sun and the corporate defendants orchestrated the unregistered offering and sale of TRX and BitTorrent BTT.
In addition, the regulator, which was heavily criticized by Gary Gensler at the time, accused them of artificially inflating trading volume and hiding payments made to celebrity endorsers promoting the tokens.
According to court records released Thursday, residence includes permanent anti-Rainberry instructions. The Company is prohibited from violating major securities laws in connection with the offering or sale of securities.
This provision prohibits engaging in transactions or business practices that act as fraud or deception on purchasers, including conduct that creates a false impression or misleads investors about the price or trading market of securities.
The SEC will handle the settlement
In a subsequent filing, Rainberry is ordered to pay a $10 million civil penalty. At the same time, the SEC agreed to dismiss all claims against Justin Sun, the Tron Foundation and the BitTorrent Foundation.
The adjuster’s dismissal also covers all remaining claims against Rainberry in the case, and no additional costs or fees are awarded.
Despite the fact that Justin Sun and his companies won the court, Tron’s original token, TRX, failed to capitalize on this legal development and remained at around $0.28 at the time of writing.
Featured image from Bloomberg, chart from TradingView.com
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