SEC Alleges Justin Sun Orchestrated Wash Trading Scheme from US Residence

The Securities and Exchange Commission (SEC) has reworked its lawsuit against Tron founder Justin Sun, alleging his involvement in a wash trading scheme conducted from his US apartment. Sun stands accused of promoting unregistered securities, Tron (TRX) and BitTorrent (BTT) tokens, to US consumers and investors.

SEC Lawsuit Intensifies: Allegations of Deliberate Targeting of US Market by Sun and Entities

Despite Sun's assertion that the SEC lacks global jurisdiction, the updated lawsuit asserts that the defendants deliberately targeted the United States through their actions. The SEC claims jurisdiction over Sun and his entities due to their promotion of TRX and BTT, unregistered transactions, and fraudulent wash trading on a US-based platform, namely Bittrex.

SEC Lawsuit Details Justin Sun's US Presence During TRX and BTT Promotion

The lawsuit highlights Sun's extensive travel to the United States during the promotion and sale of TRX and BTT tokens. Sun allegedly spent significant periods in the US in 2017, 2018, and 2019, including visits to Boston, New York, and San Francisco. Additionally, it is alleged that Rainberry Inc., an entity associated with Sun, rented an apartment where Sun stayed during some of his US trips in 2019.

SEC Allegations Against Justin Sun: US Presence Amplifies Regulatory Concerns

The SEC's allegations against Sun suggest a deliberate effort to target US investors and consumers, raising questions about regulatory compliance and accountability. Sun's presence in the US during key periods of token promotion and sales underscores the SEC's jurisdictional claims and adds weight to the lawsuit's allegations of fraudulent conduct.

SEC's Revised Lawsuit Against Justin Sun: Implications for Crypto Industry and Regulatory Compliance

The reworked lawsuit against Justin Sun and associated entities signals the SEC's continued crackdown on alleged securities violations within the cryptocurrency industry. As the legal proceedings unfold, the outcome may have significant implications for both Sun and the broader crypto ecosystem, particularly concerning regulatory compliance and investor protection.