Justin Sun, the founder of TRON, is facing a lawsuit by the United States Securities and Exchange Commission (SEC) regarding the sale of TRON’s native cryptocurrency, TRX, and its BitTorrent Token (BTT). The SEC alleges that Sun conducted an unregistered securities offering and made false statements about the project’s partnerships and potential profitability.
TRON is a blockchain-based platform that aims to create a decentralized internet. Its native cryptocurrency, TRX, is used to power the network and facilitate transactions. BitTorrent Token (BTT) is a cryptocurrency that was created as part of TRON’s acquisition of BitTorrent, a peer-to-peer file sharing platform.
According to the SEC’s complaint, Sun conducted an unregistered securities offering by selling TRX to U.S. investors in 2017. The SEC alleges that Sun and his company, TRON Foundation, marketed TRX as a profitable investment opportunity without disclosing important information to investors.
The SEC also alleges that Sun made false statements about TRON’s partnerships and potential profitability. In particular, the SEC claims that Sun falsely claimed that TRON had a partnership with Chinese internet giant Baidu and that TRON would soon be listed on major U.S. exchanges.
The SEC’s complaint seeks to enjoin Sun and TRON Foundation from further violations of securities laws and to require them to pay civil penalties. The complaint also seeks to bar Sun from serving as an officer or director of any public company.
Sun has denied the allegations and has vowed to defend himself vigorously. In a statement, Sun said that he had always complied with applicable laws and regulations and that he was confident that he would prevail in court.
The lawsuit is the latest in a series of regulatory actions against cryptocurrency projects. The SEC has been cracking down on initial coin offerings (ICOs) and other cryptocurrency-related activities that it deems to be securities offerings.
The lawsuit against Sun and TRON Foundation highlights the importance of complying with securities laws when conducting cryptocurrency-related activities. As the cryptocurrency industry continues to grow and evolve, it is likely that regulators will continue to scrutinize cryptocurrency projects and take action against those that violate securities laws.
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- Source: Plato Data Intelligence: PlatoData