SEC’s Lawsuit in Favor Intensifies as They Allege Justin Sun’s Extensive Travels in the US

The United States Securities and Exchange Commission (SEC) has intensified its legal battle against Justin Sun, the founder of Tron, by bolstering its lawsuit against him. The SEC argues that Sun’s frequent visits to the U.S. give the regulatory body jurisdiction over him, despite his attempts to dismiss the case.

According to the SEC, Sun spent a total of 380 days in the U.S. between 2017 and 2019, primarily for business purposes related to the Tron Foundation, the BitTorrent Foundation, and Rainberry. These trips are being used as evidence to establish Sun’s connection to the U.S. and his alleged violations of securities laws.

On March 23, 2024, the SEC accused Sun of selling tokens like Tron (TRX) and BitTorrent (BTT) without following the necessary regulations. They also claim that Sun engaged in manipulative wash trading to create a false impression of the tokens’ performance.

Furthermore, the SEC alleges that Sun promoted and sold these tokens to individuals in the U.S., using his frequent visits as proof of his involvement in their sale. This strengthens the SEC’s argument that they have the authority to take legal action against him.

In response to the lawsuit, Sun had previously sought its dismissal, arguing that the SEC did not have jurisdiction over him and the Tron Foundation, which is based in Singapore. However, the SEC’s latest filing challenges Sun’s claims by highlighting his significant presence in the U.S. and his alleged promotion of TRX and BTT tokens to U.S. residents.

The outcome of this legal battle will have far-reaching implications for Sun and the wider cryptocurrency industry, particularly in terms of regulatory oversight and jurisdictional boundaries in the ever-evolving landscape of digital assets.