SEC sues Tron founder Sun ── suspicion of selling unregistered securities and market manipulation | coindesk JAPAN | Coindesk Japan

On March 22, the U.S. Securities and Exchange Commission (SEC) sued Tron founder Justin Sun for allegedly selling and distributing unregistered securities (airdrops), fraud and market manipulation.

Sun, the Tron Foundation, the BitTorrent Foundation, and Rainberry (formerly BitTorrent) will be sued for the sale of Tron (TRX) and BitTorrent (BTT), according to a press release. The SEC considers TRX and BTT to be unregistered securities.

The SEC further alleges that the defendants “rigged” the secondary market for TRX through “massive wash trading.” Stated. According to court filings, employees of the Tron Foundation made the transactions, BitTorrent and Tron Foundations managed the accounts, and Rainbowberry employees transferred the funds for the transactions.

TRX fell 13% following the announcement. Other Sun-related crypto assets, including Huobi (HT), JUST (JST) and Sun (SUN), also fell by more than 5%.

In a release, SEC Chairman Gensler described the case as an example of the risks crypto investors can face with unregistered securities.

“Mr. Sun and his company not only targeted American investors by offering and selling unregistered securities and made millions of dollars in illicit profits at the expense of investors, but also unregistered trading platforms. We did a wash trade on , to make it look like TRX was actively traded,” Gensler said.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: Justin Sun (CoinDesk)
｜Original: Tron Founder Justin Sun Sued by US SEC on Securities, Market Manipulation Charges