The U.S. Securities and Exchange Commission (SEC) announced a settlement with Tron founder Justin Sun on Thursday, resolving allegations of securities law violations. Rainberry Inc., a company linked to the Tron network, will pay a $10 million fine as part of the agreement.
The SEC’s lawsuit, initiated in 2023, accused Sun and his companies of selling unregistered securities through the distribution of Tron (TRX) and BitTorrent (BTT) tokens. Additionally, the agency alleged that the defendants engaged in fraudulent activities to manipulate the secondary market for TRX, including a scheme involving extensive wash trading.
According to the court filing, all claims against Rainberry will be dismissed with prejudice, meaning the SEC cannot pursue similar charges in the future. The settlement also clears Sun, the Tron Foundation, and the BitTorrent Foundation of any remaining allegations.
The SEC confirmed that it has reviewed and approved the terms of the settlement, which is pending approval from a federal judge. This resolution follows a broader trend where the SEC has dropped numerous lawsuits against crypto firms, particularly after leadership changes within the agency.
Sun’s legal troubles were put on hold last year amidst a pause in several SEC actions against cryptocurrency companies. Notably, after the 2024 re-election of former President Donald Trump, Sun made significant investments in World Liberty Financial tokens, accumulating nearly $700 million in total holdings.
As of now, spokespeople for Tron have not responded to requests for comments. The SEC also declined to provide further statements regarding the settlement.
In a statement on social media platform X, Sun expressed optimism about the settlement, stating, “Today’s resolution brings closure, but I never stopped building. I will continue to focus on accelerating innovation in the United States and around the world and look forward to working with the SEC to develop guidance and regulations for crypto going forward.”
The SEC has settled its lawsuit against Tron founder Justin Sun, imposing a $10 million fine on Rainberry Inc. The settlement dismisses all claims against Sun and his companies, marking a significant resolution in the ongoing regulatory scrutiny of the cryptocurrency sector.