SEC Updates Lawsuit Against Tron Founder, Cites ‘Extensive Travel’ to Assert Jurisdiction
The Securities and Exchange Commission (SEC) of the United States has revised its legal complaint against Justin Sun, the entrepreneur behind the cryptocurrency platforms Tron and BitTorrent. The SEC is charging Sun with the distribution of unregistered securities linked to TRX and BTT tokens.
SEC Expands Charges in Crypto Lawsuit
The SEC’s jurisdiction over Sun is based on his substantial physical presence in the U.S., where he resided for over 380 days during 2017 to 2019, spending time in major cities including New York City, Boston, and San Francisco. The revised lawsuit also targets affiliated organizations such as the Tron Foundation and BitTorrent Foundation, alleging that Sun had authoritative control over these entities.
Allegations of Wash Trading on U.S. Soil
The complaint intensifies its focus on alleged wash trading activities, particularly on the Seattle-based cryptocurrency exchange Bittrex. The SEC accuses Sun of using these platforms to manipulate transaction volumes artificially, enhancing the trading profile of the involved tokens to U.S. investors.
Justin Sun Refutes SEC’s Claims
In defiance of the SEC’s charges, Sun contests the jurisdictional claim, insisting that the token sales were conducted outside the United States and were not aimed at American investors. He argues that the SEC does not possess the legal standing to extend its regulatory enforcement to him or the Singapore-based entities. This ongoing dispute underscores the intricate and evolving regulatory challenges facing the cryptocurrency sector globally.
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