Justin Sun Resolves SEC Fraud Case with $10 Million Settlement

Justin Sun, the founder of Tron Foundation, has reached a $10 million settlement with the Securities and Exchange Commission (SEC) over allegations of fraud in his cryptocurrency trading activities.

The SEC had sued Sun and his companies, including Tron Foundation, BitTorrent Foundation, and Rainberry, in March 2023, claiming they schemed to illegally distribute tronix and bittorrent tokens, artificially inflate trading volume, and conceal payments to celebrity endorsers.

Sun was accused of ordering employees to conduct hundreds of thousands of trades between two accounts he controlled, creating a false and misleading sense of legitimate trading. He was also accused of retaining celebrities like Lindsay Lohan, Akon, Ne-Yo, and Jake Paul to promote tronix and bittorrent on social media, while concealing they were paid for their efforts.

The settlement does not admit or deny wrongdoing by Sun or his companies. It requires court approval and was made by one of Sun's companies.