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Rainberry, a firm linked to the Tron network, will incur a $10 million penalty. Charges against Sun will be dismissed.
Justin Sun speaks at Consensus Hong Kong (CoinDesk)
The U.S. Securities and Exchange Commission announced a settlement with Tron and its founder Justin Sun on Thursday, as indicated in a court document.
As part of the settlement agreement, Rainberry Inc., a company connected to the Tron network, will pay a penalty of $10 million and will be prohibited from future infractions of securities regulations. The SEC filed a lawsuit against Sun and Tron in 2023, claiming breaches of federal securities laws related to the sale and distribution of Tron (TRX) and BitTorrent (BTT) tokens. The agency also accused of manipulating the TRX secondary market through a scheme involving “extensive wash trading.”
“The remaining allegations against Rainberry will be dismissed with prejudice,” the document stated. “The Final Judgment will also dismiss all claims against Justin Sun, Tron Foundation, and BitTorrent Foundation.”
With prejudice signifies that the SEC will not be able to initiate a similar case in the future regarding the same actions.
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“The Commission has reviewed and sanctioned the settlement terms, as shown in the Consent and proposed Final Judgment. Rainberry, Justin Sun, Tron Foundation, and BitTorrent Foundation have agreed to the entry of the Final Judgment,” the document noted.
The proposed settlement awaits the approval of a federal judge.
At the time, the SEC, under former Chair Gary Gensler, initiated several lawsuits against cryptocurrency firms.
Most of these cases were dropped after President Donald Trump resumed office last January, primarily under Commissioner Mark Uyeda, the acting chair. The commission is currently led by Chairman Paul Atkins.
Sun purchased approximately $80 million worth of World Liberty Financial tokens (WLFI)—the token associated with the company partially owned by Trump and his family—following Trump’s reelection in 2024. The SEC’s case against Sun was suspended last year, along with various other cases the agency filed against crypto companies.
UPDATE (March 5, 22:00 UTC): Provides additional context.
