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SEC and Justin Sun Collaborate on Case Resolution

The SEC and Justin Sun are seeking time to potentially resolve the regulator's case against the crypto entrepreneur. The request to pause the legal proceedings involves three of Sun's companies as well. Find out more here.

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Update: SEC and Justin Sun Seek Settlement Talks

In a recent development, the US Securities and Exchange Commission (SEC) and crypto entrepreneur Justin Sun have jointly requested a federal court to pause the SEC's case against Sun. This move aims to facilitate discussions for a potential settlement agreement.

Details of the Filing

  • The SEC and Sun filed a request with a Manhattan federal court on February 26 to stay the ongoing case.
  • Both parties expressed their interest in exploring a resolution and highlighted the importance of pausing the matter for this purpose.
  • If the court approves the stay, the SEC and Sun intend to submit a joint status report within 60 days.

This action reflects a broader trend where the SEC, under the Trump administration, has opted to halt or dismiss several crypto-related enforcement actions. Notably, similar moves have been made regarding cases involving exchanges like Binance and Coinbase.

Trump Administration's Stance on Crypto Regulation

President Donald Trump had promised to reduce regulatory strictness in the digital asset industry, positioning the US as a global hub for crypto activities. This vision has influenced the SEC's approach, leading to a temporary pause in cases with impending deadlines.

Background of the SEC's Lawsuit Against Sun

  • In March 2023, the SEC filed a lawsuit against Justin Sun and three of his companies, alleging the sale of unregistered securities through the tokens Tron (TRX) and BitTorrent (BTT).
  • The regulator also accused Sun and his entities of engaging in manipulative trading practices in secondary markets.

Sun contested the SEC's jurisdiction over the token sales, arguing that the activities were primarily conducted outside the agency's reach. However, the SEC countered this argument by highlighting Sun's extensive travel within the US, asserting its jurisdiction.

Justin Sun's Involvement with World Liberty Financial

  • Sun, a prominent figure in the crypto space, serves as a major investor and advisor to Trump's crypto platform, World Liberty Financial.
  • He has made significant investments in the platform, totaling $75 million through two substantial purchases of the platform's native token.

The evolving dynamics between Sun, the SEC, and the Trump administration underscore the complexities of regulatory oversight in the crypto industry, with implications for key players and market participants.

Contacting Concerned Parties

Cointelegraph has reached out to both the SEC and Tron for further comments on the unfolding situation.

Further Reading

Explore how crypto regulations are evolving globally in 2025 in our in-depth magazine feature.