SEC Reaches Settlement With Tron Founder Justin Sun Over TRX and BTT Token Case

The U.S. Securities and Exchange Commission (SEC) has reached a settlement with Tron founder Justin Sun and related entities, marking a significant development in the long-running legal dispute over alleged securities violations involving Tron (TRX) and BitTorrent (BTT) tokens.

According to a court filing released Thursday, Rainberry Inc., a company connected to the Tron ecosystem, agreed to pay a $10 million civil penalty as part of the settlement. The agreement also requires Rainberry to refrain from future violations of federal securities laws. In return, the SEC will dismiss the remaining claims against Rainberry with prejudice, meaning the regulator cannot bring the same allegations again in the future.

The proposed settlement also resolves the SEC’s claims against Justin Sun, the Tron Foundation, and the BitTorrent Foundation. If approved by a federal judge, the final judgment would formally dismiss all charges against these parties, bringing an end to the case that began in 2023.

The SEC initially sued Sun and his associated companies for allegedly violating U.S. securities laws through the sale and distribution of TRX and BTT tokens. Regulators also accused Sun of orchestrating a large-scale wash trading scheme designed to manipulate the secondary market price of TRX. Wash trading refers to the practice of repeatedly buying and selling the same asset to create misleading trading activity and artificially influence market perception.

In its filing, the SEC confirmed that both the agency and the defendants had agreed to the terms of the settlement. The commission reviewed and approved the consent agreement and proposed final judgment, with Rainberry, Justin Sun, the Tron Foundation, and the BitTorrent Foundation consenting to the court order.

The settlement still requires approval from a federal judge before it becomes final.

The lawsuit was originally filed during the tenure of former SEC Chair Gary Gensler, when the agency pursued multiple enforcement actions against cryptocurrency firms. However, many of those cases were later dropped after Donald Trump returned to the presidency in January, with Commissioner Mark Uyeda serving as acting chair before Paul Atkins assumed the role of SEC chairman.

Justin Sun also drew attention after purchasing roughly $80 million worth of World Liberty Financial (WLFI) tokens, a cryptocurrency project partly owned by Trump and members of his family, shortly after the 2024 election. Around the same time, the SEC paused its case against Sun alongside several other enforcement actions targeting crypto companies.

Representatives for the SEC and the Tron network have not yet responded to requests for comment regarding the settlement.