SEC, Tron, and Justin Sun Seek Case Pause Amid Potential Settlement Talks

The U.S. Securities and Exchange Commission (SEC), the Tron Foundation, and Justin Sun have jointly requested a federal judge to pause the regulator’s lawsuit against Sun and his company. The motion, filed Wednesday, signals ongoing settlement discussions, similar to those in the SEC’s cases against Coinbase and Binance.

According to the filing, both parties believe a stay would benefit all involved while considering a resolution, preventing unnecessary litigation. The SEC had sued Sun, Tron, and BitTorrent in July 2023, alleging unregistered securities offerings, fraud, and market manipulation. The regulator claimed Sun engaged in wash trading, artificially inflating TRX’s trading volume with over 600,000 transactions by Tron Foundation employees.

Sun, currently an adviser to World Liberty Financial—linked to U.S. President Donald Trump—recently purchased $30 million worth of WLFI tokens. In return, World Liberty acquired TRX for its token treasury.

The case is overseen by Judge Edgardo Ramos, who previously denied the SEC’s push for additional responses from Tron in pre-trial motions. Tron had earlier filed to dismiss the lawsuit entirely.

This development follows the SEC’s agreement to drop its case against Coinbase, pending commissioner approval. If Tron and the SEC reach a resolution, it could mark another significant shift in crypto regulation enforcement.