SEC Drops Fraud Case Against Tron Founder Justin Sun in $10 Million Settlement

The Securities and Exchange Commission (SEC) has dropped its lawsuit against Justin Sun, the founder of Tron and BitTorrent, after a three-year battle. The settlement, worth $10 million, marks a significant shift in the case, which had raised concerns about potential 'pay-to-play' schemes linked to Sun's investments.

The SEC initially charged Sun with selling unregistered securities under TRX and BTT tokens, alleging that he manipulated wash trading to inflate the volume and price of trading. The agency also accused him of offering celebrities such as Akon, Lindsay Lohan, and Jake Paul to endorse these tokens without warning their payment.

Sun's company, Rainberry, paid the $10 million fine, resolving the matter without an admission of guilt. This settlement aligns with a broader rollback of crypto enforcement efforts under the Trump administration, which has reduced cases against companies like Kraken and Coinbase.