$TRX SEC Drops Case Against Justin Sun - BitTorrent to Pay $10M Settlement
The U.S. Securities and Exchange Commission (SEC) has reached a settlement in its lawsuit against Justin Sun and entities linked to the Tron ecosystem, bringing an end to a case that began in 2023.
Under the agreement approved by a New York court:
- Rainberry Inc. (the company behind BitTorrent) will pay a $10 million fine.
- The SEC will drop all charges against Justin Sun, Tron Foundation, and BitTorrent Foundation.
Notably, the case was dismissed “with prejudice,” meaning the SEC cannot refile the same allegations in the future. The parties accepted the settlement without admitting or denying wrongdoing.
The lawsuit, originally filed in March 2023, accused Sun of selling unregistered securities through TRX and BTT, conducting wash trading to manipulate markets, and promoting tokens through celebrities without disclosing compensation.
The settlement is widely viewed as another sign that the SEC may be taking a softer stance toward the crypto industry, following a series of dropped or settled enforcement actions against major crypto players.