SEC in talks to stay the civil fraud case against TRON founder Justin Sun

The American Commission for Securities and Exchange plans to take a break in terms of civil fraud against the founder of Tron Justin Sun to explore a possible resolution that could benefit the two parties and the public.

In a letter sent Wednesday to the judge of the American district Edgardo Ramos in Manhattan, lawyers representing the Sun and the SEC asked a break in the case, proposing to provide an update of the status 60 days after the suspension, as originally indicated by Reuters. The casePosed in March 2023, accused Sun and its companies of illegally distributing Tronix (Trx) and Bittorrent (BTT) and artificially inflating the volume of trading.

More specifically, the dry accused Sun from the sale of TRX and BTT tokens as investments without appropriate recording through unregistered “premium programs”. These programs have encouraged interested parties to promote tokens on social networks and chat groups and create Bittorrent accounts in exchange for the reception of TRX and BTT. The SEC also said that Sun and his companies had led BTT monthly gifts to American investors who already held TRX in their wallets or on certain exchanges.

In addition, the dry accused Sun of Wash Trading, creating the illusion of active trading and liquidity on the markets for these tokens. More specifically, from April 2018 to February 2019, Sun would have asked its employees to carry out more than 600,000 WASH transactions from TRX using two commercial accounts which it controlled. These professions involved manipulating the market with daily transactions between 4.5 million and 7.4 million TRX. To execute this program, Sun would have provided a large amount of TRX. In addition, he was accused of having sold TRX on the secondary market, which led to a product of $ 31 million.

Finally, the sun too hiring Several high -level celebrities to promote these tokens without disclosing their compensation. The dry also charge Eight celebrities, including Lindsay Lohan, Akon and Austin Mahone, to illegally promote TRX and / or BTT without revealing that they were paid for these endorsements and the specific amounts they received.

Before that, Justin Sun was under another legal projector when the blockchain protocol chain considered Bring legal action against him. This was triggered by Sun’s allegations that the company was involved in Onyxcoin (Xcn) Market manipulation – an accusation which seems particularly ironic in the light of the sun loads deposited by the dry.

Sun did these allegations in an article on January 24, saying that the chain used a high lever effect and contracts that could harm the exchange users. He suggested that crypto’s exchanges should be careful and said it would bring back the supposed illegal activities of the chain to the dry and doj. In response, the chain rejected Sun’s accusations, declaring that it does not engage in trade Xcn And stressing that the XCN token is managed by Onyxdao. After that, Sun reiterated his accusations, this time by drawing attention to Onyxdao and by urging the regulatory organizations to investigate.