In a recent legal development, the Securities and Exchange Commission (SEC) has amended its lawsuit against Tron founder Justin Sun, shedding light on alleged promotional activities related to TRX and BTT tokens within the United States.
Initially seeking the dismissal of the lawsuit, Sun argued against the SEC’s jurisdiction, citing the international scope of the alleged misconduct.
However, the updated documents now assert that the defendants actively targeted the U.S. market. According to the revised filing, the defendants engaged in various activities, including promoting TRX and BTT to U.S.-based consumers and investors, conducting unregistered transactions of these tokens within the country, and orchestrating a fraudulent scheme involving TRX on a U.S.-based trading platform, specifically Bittrex.
Of particular note is Sun’s extensive presence in the United States during the period in question. The lawsuit alleges that Sun made numerous trips to U.S. cities such as Boston, New York, and San Francisco, totaling over 80 days in 2017, more than 120 days in 2018, and approximately 180 days in 2019.
Additionally, it is claimed that Rainberry Inc., an entity linked to Sun, facilitated his stays in the U.S. by renting an apartment during his visits in 2019. These developments underscore the SEC’s determination to hold individuals and entities accountable for alleged securities violations, even in cases involving international dimensions.
The outcome of this legal battle could have significant implications for the regulation of digital assets and the responsibilities of their issuers in the global marketplace.