SEC Files Lawsuit Against Tron Founder Justin Sun

The United States Securities and Exchange Commission has filed a lawsuit in the US District Court for the Southern District of New York against Justin Sun, the Tron Foundation, the BitTorrent Foundation, and Rainberry over their offer and sale of TRX and BitTorrent (BTT) tokens, alleging they were securities.

The financial regulator further accused Sun of orchestrating “manipulative wash trading” and engaging the help of celebrities, including American rapper DeAndre Cortez Way (Soulja Boy), Austin Mahone, actress Lindsay Lohan, YouTuber Jake Paul, and singer Aliaune Thiam (Akon) to publicly promote the tokens without disclosing that they had been paid for doing so.

Thus, the SEC claims, the public was misled into believing that the celebrities had an unbiased interest in TRX and BTT, when in fact they were paid spokespersons. As a result, the SEC is calling for a jury trial.