Justin Sun, the billionaire behind the Tron cryptocurrency, is getting a temporary reprieve from the SEC’s fraud lawsuit. The SEC and Sun have jointly asked a judge to pause the case while they explore a possible settlement.
A Temporary Pause
The request to halt the proceedings was granted. Both sides argued that a settlement would save court time and resources. This pause doesn’t affect any existing court deadlines.
The SEC’s Case Against Sun
The SEC originally accused Sun and his companies of fraud, selling unregistered securities, and manipulating the Tron (TRX) price through “wash trading” – a tactic to artificially inflate prices. This happened in 2023, the same year Sun invested heavily in Donald Trump’s World Liberty Financial platform.
Tron’s Defense
Last April, Sun’s team argued that the SEC’s jurisdiction doesn’t extend to overseas transactions. They claimed the SEC was overreaching by trying to apply US laws to mainly foreign activities.
A Broader Trend?
It’s worth noting that the SEC has recently dropped other big cases against crypto companies, including Coinbase and Consensys. This suggests a possible shift in the SEC’s approach to crypto regulation.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in cryptocurrencies.
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