- SEC claims that Sun’s activities in the offer and sale of TRX and BTT violated the Securities Act.
- The SEC alleged TRX and BTT are unregistered securities.
The Securities and Exchange Commission (SEC) accused Tron founder Justin Sun on Wednesday of orchestration of the unregistered offer and sale, manipulative trading. And unlawful touting of crypto asset securities.
Today we charged crypto entrepreneur Justin Sun and three of his wholly-owned companies for the unregistered offer and sale of crypto asset securities Tronix and BitTorrent. Read more:https://t.co/4tXgKNof6Q
— U.S. Securities and Exchange Commission (@SECGov) March 22, 2023
Since August 2017, Sun and his companies, including the Tron Foundation, BitTorrent Foundation, and Rainberry have been accused of plotting to distribute billions of Tronix (TRX). And BitTorrent (BTT) cryptocurrency assets while also inflating trading activity.
The SEC asserts that Sun violated certain provisions of the Securities Act. That was in the offer and selling of TRX and BTT. The regulator claimed that Sun sold more than $31 million worth of the token. It is a result of more than 600,000 wash transactions of TRX. And that took place between April 2018 and February 2019.
The singers Akon, Austin Mahone, and Ne-Yo, the boxer and online personality Jake Paul, the rapper Lil Yachty, and the actress Kendra Lust from adult films were among the other celebrities accused.