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SEC Amends Lawsuit Against Justin Sun in Cryptowire Industry
The United States Securities and Exchange Commission (SEC) has made amendments to its lawsuit against Justin Sun and his crypto companies, Tron Foundation, the BitTorrent Foundation, and Rainberry. This follows Sun’s attempt to dismiss the litigation last month, as revealed in court documents filed on Thursday.
Tron Lawsuit Update
In the updated court filings, the SEC alleges that the Tron founder “traveled extensively” to the U.S. in connection with his work for the Tron Foundation, the BitTorrent Foundation, and/or Rainberry.
Allegations and Denials
The original lawsuit accuses Sun and the mentioned crypto entities of violating federal law by offering and selling unregistered securities in the form of Tronix (TRX) and BitTorrent (BTT). Sun has denied these allegations, challenging the SEC’s jurisdiction and arguing against the classification of TRX and BTT as investment contracts or securities.
Celebrities Involved
Notable celebrities like Lindsay Lohan, Jake Paul, and Austin Mahone have also been charged for promoting TRX and/or BTT without disclosing that they were compensated for it.
SEC’s Regulatory Approach
The SEC’s amended lawsuit against Tron comes at a time of increased scrutiny over its regulatory tactics in the crypto industry. Critics argue that the SEC lacks a clear regulatory framework for cryptocurrencies and instead relies on enforcement actions against major industry players.
Future Regulatory Actions
Under Chair Gary Gensler, the SEC has pursued legal action against prominent crypto entities such as Coinbase, Ripple, and Binance for alleged violations of federal securities laws. Despite facing resistance, the commission continues to push forward with its regulatory agenda, including equity market structure rules and cybersecurity regulations.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
