- SEC agrees to dismiss all claims against Justin Sun, the Tron Foundation, and the BitTorrent Foundation.
- Rainberry Inc., the company behind the BitTorrent protocol, agrees to pay a $10 million civil penalty and accept an injunction against deceptive securities practices.
- Settlement subject to court approval; no admission or denial of the original 2023 allegations of unregistered token sales and wash trading.
The U.S. Securities and Exchange Commission has moved to resolve its long-running civil fraud case against crypto entrepreneur Justin Sun and entities tied to the Tron network.
In a proposed final judgment filed in federal court in New York, Rainberry Inc. — the developer of the BitTorrent protocol and BTT token under Sun’s leadership — will pay a $10 million civil penalty. The company will also face an injunction barring it from engaging in deceptive practices in securities offerings, according to the proposed judgment.
The SEC will dismiss with prejudice all remaining claims against Justin Sun personally, the Tron Foundation, and the BitTorrent Foundation. The original 2023 lawsuit alleged unregistered offers and sales of TRX and BTT tokens, market manipulation through wash trading, and undisclosed celebrity promotions.
Justin Sun welcomed the development in a verified post on X: “I am very pleased to confirm that the SEC has moved to dismiss all claims against me, Tron Foundation, and BitTorrent Foundation. Today’s resolution brings closure, but I never stopped building. I will continue to focus on accelerating innovation in the United States and around the world and look forward to working with the SEC to develop guidance and regulations for crypto going forward.”
The agreement comes without any admission or denial of wrongdoing by the defendants and remains subject to final court approval. It reflects a broader trend of the SEC resolving several high-profile crypto enforcement actions initiated in prior years.
Amanda Fischer, policy director and COO at Better Markets, criticized the terms as a “sweetheart settlement,” stating the commission had “overwhelming evidence” yet opted for what she called a face-saving measure given the alleged scope of the conduct.
For the Tron ecosystem and its native TRX token, the settlement removes a multi-year regulatory cloud. Industry participants continue to monitor how such resolutions shape future enforcement priorities and the path toward clearer U.S. crypto rules.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
