Justin Sun’s Legal Battle with the SEC Suspended
The legal battle between Justin Sun and the Securities and Exchange Commission (SEC) is taking an unexpected turn. In a letter to Judge Edgardo Ramos in Manhattan, Sun’s lawyers and the SEC have requested a suspension of the proceedings, citing the public interest and the interests of both parties. This 60-day pause leaves the outcome of the case in doubt, which could result in a settlement or a complete dismissal of the charges.
Justin Sun, the founder of TRON and a prominent figure in the crypto world, is facing a lawsuit filed by the SEC in March 2023. The agency accuses him of manipulating the trading volumes of Tronix and BitTorrent tokens, distributing them illegally, and secretly compensating celebrities to promote them.
A Shifting Regulatory Climate
This potential retreat by the SEC comes at a time when the Trump administration is showing increased support for the crypto industry. President Trump recently appointed Paul Atkins, a well-known advocate for crypto, as the head of the regulatory agency. This appointment could signal a change of direction for the SEC, which has been strict under the leadership of Gary Gensler, criticized for his intention to tighten regulation on digital assets.
According to court documents, Sun allegedly made over $31 million in profits by orchestrating fictitious transactions to create the illusion of legitimate market activity. He also recruited personalities such as Lindsay Lohan, Akon, Ne-Yo, and Jake Paul to promote his tokens without disclosing that they were being paid for these campaigns.
Massive Purchase of Trump-Related Tokens
As the outcome of his legal future remains uncertain, Justin Sun continues to influence the cryptocurrency market. He has recently acquired $75 million worth of TRUMP tokens, the meme coin associated with US President Donald Trump. This massive investment, revealed on platform X, fuels speculation about potential conflicts of interest between Sun and the US administration.
Corey Frayer, a former advisor to Gary Gensler, was quick to react:
The potential withdrawal of the SEC from the case against Sun is good news for one of the president’s crypto allies, but it harms an industry already striving for credibility.
World Liberty Financial, another crypto project backed by Donald Trump, owes much of its success to Justin Sun. The billionaire crypto investor has become an official advisor to the project after purchasing $30 million worth of WLFI tokens.
For several weeks, the Trump-backed WLFI faced mediocre sales, falling short of its $30 million fundraising target. The token couldn’t be traded and was only accessible to non-US investors and accredited US investors.
However, Sun’s intervention changed the project’s fate.
Between Crypto and Art: Sun, a Controversial Collector
Beyond the world of digital assets, Justin Sun has established himself as an extravagant art collector. Last November, he spent $6.2 million at Sotheby’s for a piece as famous as it is absurd: a banana taped to a wall.
But one of Sun’s most memorable moments remains his record-breaking lunch with Warren Buffett, which he acquired at auction for $4.57 million in 2019. Despite its astronomical price, the meeting did not seem to convince the legendary investor of the virtues of Bitcoin.
