The US Securities and Exchange Commission is considering stopping its civil fraud case against Justin Sun, the founder of Tron, to detect a possible resolution that can benefit both sides and the public.
In a letter sent to American District Judge Edgardo Ramos in Manhattan on Wednesday, the lawyers and SEC representing the Sun requested a stagnation in the case, proposed to provide a status update 60 days after a stay, as originally reported. Roots, CaseFiled in March 2023, and their companies are illegally distributing Tronix (TRX) and Bettort (BTT) and artificially inflating the TRX trading volume.
In particular, SEC accused Sun to sell TRX and BTT tokens as investment without proper registration through unregistered “bounty programs”. These programs encouraged the parties interested in promoting tokens on social media and chat groups, and created a bittort account in exchange for obtaining TRX and BTT. The SEC also claimed that Sun and their companies operated the monthly givway of BTT to American investors, already in their purse or in some exchanges.
Additionally, SEC accused Wash trading flax, causes the illusion of active trading and liquidity in the markets for these tokens. In particular, from April 2018 to February 2019, Sun allegedly directed its employees to complete over 600,000 wash trades of TRX, controlling two business accounts. These trades included manipulating the market with daily wash trades between 4.5 million and 7.4 million TRX. To execute the scheme, Surya reportedly supplied a large amount of TRX. Additionally, he was accused of selling TRX in the secondary market, resulting in $ 31 million in income.
Finally, Sun also hired several high-profile personalities to promote these tokens without disclosing their compensation. SEC is also Was accused Eight celebrities, including Lindsay Lohan, Ekon and Austin Mahon, revealed to promote TRX and/or BTT illegally that they were paid for in -endorsements and specific zodiac signs to them.
Earlier, Justin Sun was in another legal spotlight when the Blockchain Protocol series considered legal action against him. It was instigated by Surya’s allegations that the company was involved in the manipulation of the Onexcoin (XCN) market – an allegation that seems particularly irony in light of the Sun’s allegations filed by SEC.
Surya made these allegations in a post on 24 January, claiming that the series was using high leverage and contracts that could damage the exchange for users. He suggested that crypto exchanges should be cautious and indicated that he would report the illegal activities of the series to SEC and DOJ. In response, the series dismissed the allegations of sun, saying that it is not engaged in trading its XCN and indicates that XCN tokens are managed by Onyxdao. Subsequently, Surya repeated his allegations, this time urged to pay attention to Onyxdao and investigate the regulatory bodies.
