2024

Chair

Gary

BitTorrent

<h3 class="wp-block-heading" id="tron-lawsuit-edited-after-justin-sun-s-attempted-dismissal">Tron Lawsuit Edited After Justin Sun’s Attempted Dismissal</h3>
<p>The United States Securities and Exchange Commission (SEC) has edited its lawsuit against Justin Sun and his associated crypto companies, including the Tron Foundation, the BitTorrent Foundation, and Rainberry. This amendment comes as a response to Sun’s attempt to dismiss the case in March, according to documents filed last Thursday.</p>
<h3 class="wp-block-heading" id="details-of-the-amended-lawsuit">Details of the Amended Lawsuit</h3>
<p>In the revised <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.596044/gov.uscourts.nysd.596044.59.0.pdf" target="_blank" rel="noopener noreferrer nofollow">filings</a>, the SEC alleges that Sun had extensive travel to the U.S. related to his work with the Tron Foundation, the BitTorrent Foundation, and Rainberry. The original lawsuit accuses Justin Sun and the related entities of violating federal law by offering and selling unregistered securities, specifically Tronix (TRX) and BitTorrent (BTT).</p>
<p>Sun’s defense in March centered on the argument that the SEC was overreaching its jurisdiction by trying to apply U.S. <a href="https://btc-pulse.com/bitfinex-securities-tokenized-debt-hotel-el-salvador/" rel="noopener noreferrer nofollow">securities </a>laws to activities mainly conducted overseas. His lawyers stated, “The SEC is not a worldwide regulator,” criticizing the agency’s approach as overly aggressive.</p>
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   <p lang="en" dir="ltr">Big news in the crypto world! SEC revamps lawsuit against Tron founder Justin Sun for alleged sale of unregistered securities via Tron and BitTorrent tokens. Sun denies allegations, challenging SEC's jurisdiction. Complex legal battle ahead in the cryptocurrency industry.</p>— Kelvin Zinck (@KelvinZinck) <a href="https://twitter.com/KelvinZinck/status/1781260690822504760?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">April 19, 2024</a>
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<h3 class="wp-block-heading" id="celebrity-involvement-in-the-case">Celebrity Involvement in the Case</h3>
<p>The lawsuit also names celebrities like Lindsay Lohan, Jake Paul, and Austin Mahone, who were allegedly <a href="https://btc-pulse.com/stacks-co-founder-layer-2-bitcoin-revolution/" rel="noopener noreferrer nofollow">involved </a>in promoting TRX and BTT without proper disclosures about being compensated.</p>
<h3 class="wp-block-heading" id="sec-presses-forward-with-crypto-crackdown">SEC Presses Forward with Crypto Crackdown</h3>
<p>Despite ongoing criticisms of its <a href="https://btc-pulse.com/sec-enforcement-director-criticizes-crypto-industrys/" rel="noopener noreferrer nofollow">enforcement</a>-first approach to cryptocurrency regulation, the SEC continues to press charges against significant figures in the industry. Under the leadership of Chair Gary Gensler, the agency has pursued actions against other major crypto platforms such as Coinbase, Ripple, and Binance for similar securities violations.</p>
<p>Recently, a U.S. District Court Judge denied Coinbase’s motion to dismiss the SEC’s charges, signaling potential tough times ahead for crypto entities fighting regulatory battles.</p>
<h3 class="wp-block-heading" id="the-bigger-picture">The Bigger Picture</h3>
<p>As the SEC pushes forward with its regulatory agenda, which includes more stringent market structure rules and enhanced cybersecurity measures, the crypto industry remains under close scrutiny. Chair Gensler emphasized this direction in a recent post on <a href="https://twitter.com/GaryGensler/status/1780685464455843858" target="_blank" rel="noopener noreferrer nofollow">X</a>, highlighting the need for continued regulatory vigilance in the digital asset space.</p>
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  <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
   <p lang="en" dir="ltr">We've been working on making our markets more efficient, competitive, transparent, and resilient. <br><br>We’ve finalized 38 rules – on Treasury clearing, corporate governance, and money market funds, to name a few.</p>— Gary Gensler (@GaryGensler) <a href="https://twitter.com/GaryGensler/status/1780685464455843858?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">April 17, 2024</a>
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<h3 class="wp-block-heading" id="conclusion">Conclusion</h3>
<p>The ongoing legal developments in the Justin Sun case exemplify the challenges facing the crypto industry as it navigates complex regulatory waters. With the SEC’s amended lawsuit highlighting Sun’s U.S. travels, the case could set important precedents for how U.S. laws are applied to international crypto activities.</p>

SEC Reworks Justin Sun Tron Lawsuit, Claims Founder “Traveled Extensively”

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