SEC filed a lawsuit against Justin Sun, alleging that he had engaged in fraud, airdropped and sold unregistered stocks, and engaged in other wrongdoing.
- 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.
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.