SEC Updates Lawsuit Against Justin Sun to Strengthen Jurisdiction Claim Over Crypto Activities
SEC amends its lawsuit to assert stronger U.S. jurisdiction over Justin Sun's crypto dealings
The SEC has amended its lawsuit against Justin Sun, the founder of Tron, to clarify its jurisdiction over his activities. Originally filed in March 2023, the complaint alleges that Sun sold securities without proper registration.
Sun's extensive travel to the U.S. between 2017 and 2019 is a focal point of the SEC's revised complaint. He spent significant time in the U.S. yearly, including lengthy stays in New York, Boston, and San Francisco.
A notable incident in 2019 involved Sun live-streaming from San Francisco, where he promoted the Tron ecosystem directly to U.S. viewers.
During this livestream, Sun discussed the benefits of the BTT airdrop for TRX holders, linking the two communities and highlighting their mutual benefits.
The SEC uses this as evidence of Sun's ties to the U.S., countering his legal team’s previous claims that the SEC lacked jurisdiction because the activities involved foreign transactions on international platforms.
The SEC's initial complaint claimed Sun illegally distributed billions of TRX and BTT tokens, creating unregistered secondary markets.
This mirrors other SEC cases asserting the need for registration under U.S. securities laws.
Furthermore, the SEC accuses Sun of manipulating trading volumes for TRX.
Previously, the SEC settled with celebrities like Lindsey Lohan to promote these tokens.
This ongoing case underscores the SEC's focused oversight of cryptocurrency operations and its efforts to enforce U.S. securities laws in the dynamic digital asset sector.
