The Securities and Exchange Commission (SEC) has filed an updated complaint in a case against Justin Sun, founder of the Tron Foundation, due to his substantial involvement and financial dealings in the U.S. This modification is connected to the ongoing lawsuit begun by the SEC in March 2023, where Sun and related entities are alleged to have illegally sold and offered unregistered securities.
Based on recent disclosures, Justin Sun spent approximately 380 days in the US from 2017 to 2019. During this time, Sun was highly engaged in marketing and managing events related to the Tron (TRX) and BitTorrent (BTT) tokens.
The SEC’s complaint reveals that Sun lived in luxurious apartments in cities such as New York, Boston, and San Francisco, in addition to an apartment leased by his previous company, Rainberry (previously known as BitTorrent), which served as his temporary residence during his travels in 2019.
Justin Sun Legal Challenges and Defenses
The SEC’s decision to investigate Sun hinges on his efforts to attract US investors through various promotional tactics like celebrity endorsements and public events. As stated by the SEC, these actions are subject to US securities laws because they target American investors and the deals take place within the country.
Sun’s lawyers have challenged the SEC’s authority over the case, stating that the SEC oversteps its bounds by attempting to enforce American securities laws on primarily foreign business dealings. They believe that since the disputed transactions occurred outside of U.S. territory, they fall beyond the jurisdiction of the SEC.
In simpler terms, this legal stance represents a larger controversy in the cryptocurrency community about the extent of American regulatory control over international crypto transactions.
Details from the Amended Complaint
The SEC’s revised complaint against Sun expands upon the initial allegations, detailing specific types of violations he is accused of committing. According to the filing, Sun orchestrated a marketing strategy centered around numerous appearances and celebrity endorsements to generate investor excitement and trading volume for TRX and BTT. This involved collaborating with celebrities who failed to disclose their eligibility, misleading investors about the nature of these endorsements.
The Securities and Exchange Commission (SEC) has accused the Sun company of manipulating the market for their tokens. They allegedly engineered trades with the intention of boosting transaction volume and subsequently raising token prices.
The crypto industry is facing increased examination from regulators who believe there are extensive infringements and breaches of securities laws taking place within it. These accusations are just one aspect of this broader review.
Shiba Inu Holders Warned of Fake $BONE Airdrop Phishing Scams
Read More
- BTC PREDICTION. BTC cryptocurrency
- USD PHP PREDICTION
- LUNC PREDICTION. LUNC cryptocurrency
- USD COP PREDICTION
- LIT PREDICTION. LIT cryptocurrency
- BCH PREDICTION. BCH cryptocurrency
- ORAI PREDICTION. ORAI cryptocurrency
- USD CNY PREDICTION
- AVAX PREDICTION. AVAX cryptocurrency
- USD MYR PREDICTION
2024-04-19 21:35