SEC and Justin Sun look to 'explore a potential resolution'
Quick Take
- The SEC charged Sun and three of his companies — Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc. — in March 2023.
- The lawyers looked to “jointly move to stay this case to allow the Parties to explore a potential resolution,” according to a filing.
- Sun is a major investor in the Trump-backed project, World Liberty Financial.
The U.S. Securities and Exchange Commission and crypto entrepreneuer Justin Sun are looking into potentially resolving its case involving fraud.
In a "motion to stay" filed in the U.S. District Court for the Southern District of New York on Wednesday, lawyers for the SEC, Sun and his companies made that request.
"Plaintiff Securities and Exchange Commission and Defendants Justin Sun, Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry, Inc. (collectively, the 'Parties') jointly move to stay this case to allow the Parties to explore a potential resolution," according to the filing.
The SEC charged Sun and three of his companies — Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc — in March 2023 over allegedly offering and selling Tronix and BitTorrent as investments “through multiple unregistered ‘bounty programs.’” Those cryptocurrencies also go by TRX and BTT.
The lawyers said that a stay is in the best interest of the court and the public.
"Further, a stay is in the Court’s and the public’s interest because a resolution would conserve judicial resources by obviating the need for the Court to resolve the Defendants’ pending motion to dismiss the complaint," they said in the filing.
In November, Sun was named an advisor to World Liberty Financial, the decentralized finance initiative backed by Donald Trump and his family. This came after Tron bought $30 million worth of World Liberty Financial's tokens. That investment later increased to $75 million.
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