The US Securities and Exchange Commission has officially ended its three-year legal battle against cryptocurrency developer Justin Sun following a $10 million settlement agreement.
Documents submitted to a federal court in Manhattan suggest that Sun’s company, Rainberry, has consented to pay the fine. In return, the regulator will terminate all legal actions against Sun and his associated entities, including the BitTorrent and Tron Foundations.
A notable aspect of the resolution is that neither Sun nor his firms are required to admit to or deny the allegations leveled by the Commission. The original case was initiated in March 2023.
It accused Sun and his businesses of marketing unregistered securities via the Tronix (TRX) and BitTorrent (BTT) tokens. Regulators also alleged that Sun had engaged in “wash trading,” a practice used to artificially inflate trading volumes by repeatedly buying and selling the same assets.
The litigation also examined celebrity endorsements involving high-profile figures such as Lindsay Lohan, Akon, and Jake Paul. The SEC claimed that these individuals were compensated to promote the tokens without disclosing their financial deals.
Throughout the proceedings, Sun remained firm in his defense, arguing that the agency was attempting to apply US laws to activities that were primarily undertaken outside the country.
This settlement reflects a broader shift in the SEC’s prosecution strategy under the current administration. In recent months, the agency has moved to resolve or discontinue several cases that began during the tenure of former Chair Gary Gensler.
Reflecting on the outcome, Sun noted that the agreement brings the conflict to an end and expressed an interest in working with authorities to establish clearer regulatory standards for the industry.
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