SEC Sues Tron’s Justin Sun for Fraud, Market Manipulation

Vignesh Karunanidhi
Tron Founder Justin Sun Sued by SEC for Fraud and Market Manipulation
Source: Bloomberg

The Securities and Exchange Commission (SEC) has evidently been on a stringent journey with its actions against the cryptocurrency realm. The scrutiny by regulators began ever after the fall of the FTX exchange. The SEC also ramped up its actions when it sued Kraken in February, for which the commission faced quite some backlash.

The latest victim of the SEC’s scrutiny is Tron founder Justin Sun. According to the latest details from the SEC, the commission has sued Sun for allegations of the sale and airdrop of unregistered securities, alongside fraud and market manipulation.

Also read: Ripple vs SEC: Messari CEO Backs Ripple, Hopes XRP to Win

SEC sues Justin SUN for sale of TRX and BTT

The press release by the SEC states that the case was brought on the grounds of the sale of TRX and BitTorrent, which the commission described as unregistered securities. The commission also alleged that Sun conducted wash trading to manipulate TRX’s secondary market.

SEC Chair Gary Gensler mentioned in a statement that:
“This case demonstrates again the high-risk investors face when crypto asset securities are offered and sold without proper disclosure.”

Also read: Telegram Adds Tether (USDT) Transfer Feature

SEC enforcement chief Gurbir Grewal said in a separate statement that “Sun paid celebrities with millions of social media followers to tout the unregistered offerings, while specifically directing that they not disclose their compensation.”

Source: Al Jazeera

The SEC has also sued celebrities, including Jake Paul, Lindsey Lohan, and Soulja Boy, for promoting TRX and BTT tokens.