US Regulators Pursue Jurisdiction to Prosecute Justin Sun
The United States Securities and Exchange Commission (SEC) has altered its lawsuit against Justin Sun, the founder of Tron, to intensify its legal stance.
Now claiming jurisdiction due to Sun’s extensive travel and business dealings within the US, the agency has made a countermove against his claims.
SEC Makes a Countermove Against Justin Sun’s Claims
The revised lawsuit now seeks to establish “personal jurisdiction” over Sun, Tron, and two other companies under his leadership. According to the SEC, these entities intentionally engaged in actions targeting the US, making this jurisdictional claim a crucial aspect of the legal proceedings.
While in key US cities like New York City, Boston, and San Francisco, Sun allegedly promoted and managed transactions for Tron (TRX) and BitTorrent (BTT) tokens.
“Specifically, Sun spent more than 80 days in the United States in 2017, more than 120 days in the United States in 2018, and approximately 180 days in the United States in 2019,” the SEC claims.
The SEC alleges that these tokens were marketed as unregistered securities to US consumers and investors. Additionally, Sun is accused of engaging in manipulative wash trading practices on the Seattle-based crypto exchange Bittrex, artificially inflating asset prices and misleading investors about their true market demand and value.
Despite these developments, the impact on the prices of TRX and BTT tokens has been minimal. TRX has slightly decreased by 0.52%, currently trading at $0.10, while BTT has seen a modest increase of 2.5%.
Tron (TRX) Price Performance. Source: BeInCrypto
The SEC’s amendment serves as a countermove against Sun’s attempt to dismiss the March 2023 lawsuit. The defendants emphasize the international nature of digital assets and the necessity of a clear regulatory framework.
They argue that without precise regulations, the SEC’s reach could disrupt the global digital asset market.
This legal dispute began with the SEC suing Justin Sun and the Tron Foundation for their ICO of the TRX token in 2017. The offering and sale of BTT tokens were also targeted in the lawsuit.
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