US SEC Asserts Jurisdiction over Justin Sun in SEC vs. Tron Case

The SEC has taken its legal battle against Tron founder Justin Sun to the next level, arguing that his frequent trips to the United States give them the right to sue him. Despite Sun’s attempts to dismiss the case, the SEC claims that his extensive stays in the US establish their jurisdiction over him, escalating the conflict between the regulatory body and the influential figure in the crypto world.

The SEC alleges that Sun spent over 380 days in the US between 2017 and 2019, primarily for business trips to major cities like New York City, Boston, and San Francisco. These trips, supposedly conducted on behalf of foundations such as Tron and BitTorrent, are cited as evidence of Sun’s connection to the US and his alleged violations of securities laws. On March 23, 2024, the SEC expanded its accusations against Sun, claiming that he sold tokens like Tron (TRX) and BitTorrent (BTT) without following proper regulations and engaged in manipulative wash trading to inflate market activity.

The crux of the dispute lies in the SEC’s argument that Sun actively promoted and sold these tokens to US residents during his frequent visits, bolstering their claim to take legal action against him. Sun, on the other hand, has tried to dismiss the lawsuit by asserting that the SEC has no jurisdiction over him or the Tron Foundation, which is based in Singapore. However, the SEC’s latest filing challenges Sun’s claims, citing his significant presence in the US and his alleged promotion of TRX and BTT tokens to US residents.

The outcome of this legal battle will have profound implications for Sun and the wider crypto industry, as it will shape regulatory oversight and establish jurisdictional boundaries in the evolving realm of digital assets.