SEC issues subpoenas against Justin Sun

Subpoenas for Justin Sun and two celebrities

The U.S. Securities and Exchange Commission (SEC) issued a subpoena against Justin Sun, the founder of the crypto asset (virtual currency) Tron (TRX), on the 12th. Failure to respond within 21 days will result in judgment under the SEC’s complaint filed in March.

In March, the SEC sued Justin Sun for offering and selling unregistered securities. Eight celebrities, including actress Lindsay Lohan, have also sued, claiming that they were promoting for money.

Specifically, we consider both TRX and BTT tokens to be unregistered securities. Sun also allegedly washed trades to make it look like he was actively trading TRX.

The SEC also alleges that Sun made about ¥4.1 billion ($31 million) by illegally selling tokens on the secondary market. He also said that the BitTorrent Foundation, which he owns, operates under the title of a non-profit organization, but is actually a for-profit organization.

connection: US SEC sues TRON founder Justin Sun and others

What is wash trade

Transactions that do not aim to transfer rights, such as placing orders for both buying and selling of the same asset by the same person for the purpose of soliciting transactions.

Cryptocurrency Glossary

In addition to Sun, the SEC also issued subpoenas to rapper Soulja Boy and singer Austin Mahone, who were promoting the token.

Among the eight celebrities, apart from Soulja Boy and Mahone, have already settled with the SEC without confirming or denying the findings of the SEC investigation, paying fines and the return of unfair profits. . As a result, only the remaining two men were summoned.

SEC Complaint

In its complaint, the SEC is asking the court to bar Sun and his company from reoffering securities containing cryptocurrencies and to pay civil penalties, among other things. It also calls for a permanent ban on Sun from serving as an officer or director of any company that issues securities.

For Soulja Boy and Mahone, we are seeking a ban on receiving compensation for promoting cryptocurrencies in the future and paying fines.

Mr. Sun’s comments

Sun commented when he was sued by the SEC in March:

The SEC’s civil complaint earlier today is just the latest example of actions it has taken against well known players in the blockchain and crypto space.

— HE Justin Sun 孙宇晨 (@justinsuntron) March 23, 2023

The SEC’s civil complaint filed today is just another example of the SEC’s recent actions against high-profile players in the blockchain and cryptocurrency sectors.

We see no merit in this lawsuit and will continue to build a decentralized financial system in the meantime.

In addition, “it is well known that the SEC’s regulatory framework around cryptocurrencies is still in its infancy,” and we are working with governments and regulatory bodies around the world dedicated to establishing “transparent guidelines.” I want to continue.

The SEC has previously sued various cryptocurrencies, deeming them to be “unregistered securities.” There is also a background that it has been repeatedly criticized for cracking down on this through legal measures without showing clear guidelines.

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Binance.US announced the delisting of Tron (TRX) on the 12th.

connection: Plans to delist 2 stocks including US Binance and TRON

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