The American stock market watchdog SEC drops all charges against crypto billionaire Justin Sun. The company Rainberry, linked to Sun, pays a fine of $10 million and the case is settled. The file has been running since 2023 and revolved around alleged fraud and the sale of unregistered crypto tokens.
SEC accused Sun of fraud with Tron
The SEC charged Sun with securities fraud in 2023. He allegedly misled investors by selling tokens through companies under his control without registration. These were organizations around the Tron network, including the Tron Foundation, BitTorrent Foundation and Rainberry.
In addition, the SEC alleged that Sun artificially inflated TRX’s trading activity through more than 600,000 wash trades. The same party buys and sells at the same time to make the trading volume appear larger than it is.
Settlement without admission of debt
Rainberry will pay a $10 million civil penalty. The company accepted the settlement without admitting guilt or denying the allegations. The agreement still needs to be approved by a judge.
Sun responded positively. On X he wrote that he was “very satisfied” that the SEC is dropping the case. He added that he never stopped building.
More crypto businesses disappear under Trump
The settlement does not stand alone. Since Trump became president again, the SEC has halted or paused several lawsuits against crypto companies, including cases against Coinbase and Binance. This change of course fits in with Trump’s ambition to make the US the “crypto capital of the world”.
The ties between Sun and Trump are striking. Sun recently invested large amounts in crypto projects of the Trump family, including a memecoin linked to the president. Shortly afterwards, he returned to the US for the first time in years and attended a dinner where Trump was also present.
Democratic members of the House of Representatives warned that halting the trial could give the impression of political influence.
Source: https://newsbit.nl/sec-laat-alle-aanklachten-tegen-crypto-miljardair-justin-sun-vallen-na-schikking-van-10-miljoen/
