- Tron’s mysterious founder is reportedly receiving a call from a New York court.
- SEC accuses Justin Sun of multiple securities law violations.
- Sun is challenging regulatory pressure.
SEC has charged TRON founder Justin Sun with allegations. Justin Sun, who received court papers, was given 21 days.
Court Papers for Justin Sun
Justin Sun, founder of Tron Foundation and BitTorrent Foundation, was subjected to a sanction action by the Securities and Exchange Commission (SEC) last month due to alleged securities violations. According to information received by Coinotag, he is reported to have received a call from a court in the Southern District of New York on Thursday. The call was sent to two addresses in Singapore and he was given 21 days to respond.
On March 23, the SEC filed a lawsuit against Sun along with three organizations, Tron Foundation Limited, BitTorrent Foundation, and Rainberry Inc. SEC brought a series of charges against Sun.
Multiple Offenses
Sun is accused of trading Tron (TRX) and BitTorrent (BTT) and not registering them as securities. He is also accused of paying celebrities such as Lindsay Lohan and Austin Malone and not disclosing their endorsements for his crypto assets and products.
The agency’s sanction action announcement on March 23 continued as follows:
“At least from April 2018 to February 2019, Sun allegedly directed his employees to launder more than 600,000 TRX between two of his controlled cryptocurrency accounts and conducted daily wash trading of 4.5 million to 7.4 million TRX.”
The agency also clearly opposed Sun’s use of famous names as promotional faces.
“Sun encouraged investors to buy TRX and BTT with his celebrity promoters and concealed that he paid for their tweets.”
As the SEC’s sanction action continues, Sun has shown a careless attitude in his public statements. On April 11, he shared a video of a social event in the Hong Kong crypto industry in a tweet. Sun wrote that hosting such an “extraordinary event” in Hong Kong deeply affected him. He added:
“Our ultimate goal is to hold cryptocurrency events in Beijing and Shanghai. I believe we can achieve this within a few years.”
Sun has not accepted that crypto sales and trading are illegal throughout China.
Denial
In accordance with Trust Project guidelines, COINOTAG is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on this content.
