SEC vs. Justin Sun
In an official statement, the Securities and Exchange Commission (SEC) accused Justin Sun and its companies to have violated the laws on securities (“securities”), and therefore to have manipulated the market to the detriment of investors.
In addition to the single founder of the Tron ecosystem, the government agency has sued the Tron Foundation, BitTorrents And Rainberryclaiming that the crypto Tron (TRX extension) and BitTorrent (BTT extension) would be “unregistered” securities.
“Sun has violated the anti-fraud provisions of federal security laws by orchestrating a scheme to artificially inflate the transaction volume of the TRX token,” the SEC said in its press release.
The alleged market manipulation took place between April 2018 and February 2019, when Sun ordered its employees to conduct at least 600,000 TRX coin transactions between two owned platforms.
The agency would then claim that Sun appropriated a illicit gain of approximately 31 million dollarsthanks to the consequent sales of the token over time.
The Tron ecosystem, in response to the press release, certainly did not react well. In little more than 30 minutes the asset recorded a -11%and certainly sees the seventeenth place among the most capitalized cryptocurrencies waver.
Celebrities and crypto
In all this, however, Justin Sun does not seem to be the only target of the agency. The SEC would in fact have accused even one long list of celebrities (among which Jake Paul, Lindsay Lohan and actress Michelle”Kendra Lust” Mason), guilty of promoting Sun products.
Furthermore, it is already known that each of these would have already agreed with the SEC to pay one $400,000 finesettling the charges.
A process similar to the one implemented in the past for Kim Kardashian, Floyd Mayweather and the promotion of Ethereum Maxa circumstance that had even called into question the president of the SEC, Gary Genslerin first person.
In a video on Twitter, Gensler had warned the influencers not to engage in the promotion of cryptocurrencies without the appropriate disclosures, explaining why they would not be safe for investors.
Sun, evidently, would have overlooked the indications of the SEC, indicating instead to the celebrities of avoid mentioning being paid by him while promoting the products.
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