New Delhi:
Justin Sun, billionaire, Tron founder and advisor to US President Donald Trump’s cryptocurrency venture World Liberty Financial, was recently granted relief from a civil fraud case filed against him.
According to a court filing, Mr Sun and the US Securities and Exchange Commission (SEC) jointly requested that a federal court pause the agency’s enforcement action against the cryptocurrency tycoon, allowing them to explore a potential resolution.
The SEC, the top financial regulator in the US, and Mr Sun’s attorneys suggested in their letter to the judge that a status report be submitted 60 days following a stay.
The SEC charged Justin Sun and three of his businesses — the Tron Foundation Limited, BitTorrent Foundation Ltd. and Rainberry, Inc. — with fraud, market tampering and issuing unregistered securities in March 2023.
Mr Sun, 34, filed a motion to have the case dismissed in March 2024, denying the accusations.
Mr Sun, who invested $75 million in the cryptocurrency token supported by the Donald Trump family, is a divisive figure in the cryptocurrency industry. He has emerged as one of the leading backers of the Trump family-backed World Liberty Financial cryptocurrency project.
According to Arkham Intelligence’s on-chain data, World Liberty Financial also holds almost $9 million worth of Tron’s native TRX tokens.
Mr Sun’s lawsuit has gained attention as the Trump administration appears to be turning a blind eye to wrongdoing outside of the cryptocurrency industry. Trump has appointed Washington attorney Paul Atkins, who is seen as pro-digital assets, as chair of the SEC and has promised to turn the US into a global hub for the crypto business.
During his presidential campaign, Donald Trump pledged to halt the regulation by enforcement strategy pursued by former SEC chair Gary Gensler.
According to the SEC, Justin Sun’s alleged strategy began in August 2017. Court documents claim that Justin Sun illegally made $31 million by directing staff members to execute hundreds of thousands of Tronix trades between two accounts under his control, giving the false impression that the trading was legitimate.
Mr Sun was also accused of hiring celebrities to promote Tronix and BitTorrent on social media, including artists Akon and Ne-Yo, and actress Lindsay Lohan, while concealing the fact that they were paid for their endorsement.
He gained significant attention in the art world in November 2024 when he spent $6.2 million at a Sotheby’s auction for a piece of art featuring a banana taped to a wall.