(2023)
SEC v. Justin Sun and Tron
Year
2023
Criminal or Civil
Civil
Year Resolved
Partial resolution (celebrity settlements) in 2023; core case still active as of 2025
Jurisdiction (Court/State)
U.S. District Court, Southern District of New York
Filed By
U.S. Securities and Exchange Commission (SEC)
Penalty/Fine (USD)
Over $400,000 in celebrity settlements; $31 million in proceeds alleged from Sun’s unlawful sales (case ongoing for primary defendants)
Lawsuit Overview
The SEC charged Justin Sun and his companies (Tron Foundation, BitTorrent Foundation, and Rainberry Inc.) with unregistered offerings of TRX and BTT tokens, market manipulation via wash trading, and secretly paying celebrities to promote the assets without disclosing compensation. Eight celebrities were also charged for illegal touting.
Category
Unregistered Securities Offerings, Market Manipulation, Illegal Touting/Promotions
Notable Individuals Involved
Justin Sun (Founder of Tron and BitTorrent)
Lindsay Lohan, Jake Paul, Lil Yachty, Ne-Yo, Akon, Soulja Boy, Austin Mahone, Kendra Lust (touting)
SEC Chair Gary Gensler
Gurbir Grewal (Director of Enforcement)
Investor Loss Estimate
$31 million estimated from unregistered sales by Sun; broader investor harm unquantified but significant due to manipulated trading volumes and misleading promotions
Final Outcome
Ongoing for Sun and corporate entities; Settled for most celebrities (excluding Soulja Boy and Austin Mahone)
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