SEC Claims Justin Sun’s Extensive US Travels, Swinging Lawsuit in Their Favor
The post SEC Claims Justin Sun’s Extensive US Travels, Swinging Lawsuit in Their Favor appeared first on Coinpedia Fintech News
The United States Securities and Exchange Commission (SEC) has strengthened its lawsuit against Tron founder Justin Sun, alleging that his extensive travel to the U.S. gives the regulator jurisdiction over him despite his attempts to dismiss the case.
The SEC claims that Sun’s extensive travel to the United States provides grounds for jurisdiction, intensifying the legal battle between the regulatory body and the prominent figure in the crypto space.
Sun’s Extensive U.S. Travel
According to the SEC, Sun spent over 380 days in the U.S. between 2017 and 2019, primarily on business trips to New York City, Boston, and San Francisco. These trips, purportedly made on behalf of the Tron Foundation, the BitTorrent Foundation, and Rainberry, are cited as evidence of Sun’s connection to the U.S. and his alleged violations of securities laws.
However, on 23 march 2024 the SEC has accessed Justin Sun of breaking the rules by selling tokens like Tron (TRX) and BitTorrent (BTT) without following proper regulations. They also say he was well engaging in manipulative wash trading to make it look better than it actually was.
Promotion of Tokens in the U.S
Additionally, the SEC says Sun promoted and sold these tokens to people in the United States. They point to his frequent trips to the U.S. as evidence that he was involved in selling these tokens here. This strengthens the SEC’s argument that they have the right to take legal action against him.
Sun’s Fiery Response
In response to the lawsuit, Sun had previously sought its dismissal, arguing that the SEC lacked jurisdiction over him and the Tron Foundation, which is based in Singapore. However, the SEC’s latest filing challenges Sun’s claims citing his substantial presence in the United States and the alleged promotion of TRX and BTT tokens to U.S. residents.
As the legal battle unfolds, the outcome will have significant implications for Sun and the broader cryptocurrency industry, particularly concerning regulatory oversight and jurisdictional boundaries in the evolving landscape of digital assets.
