Controversial Tron founder Justin Sun has been asked to pay a $10 million fine as part of a lawsuit settlement with the US Securities and Exchange Commission (SEC).
The SEC’s legal counsel informed Judge Edgardo Ramos yesterday of the arrangement made between the government body and Sun’s Rainberry (formerly BitTorrent).
The settlement, which still requires court approval, would see the SEC drop all claims brought against Sun, his firms, and his token, Tron (TRX). The regulator had made allegations of wash trading, price manipulation, and the sale of unregistered securities.
“The remaining claims against Rainberry would be dismissed with prejudice. The final judgment would also dismiss all claims against Justin Sun, Tron Foundation, and BitTorrent Foundation,” the letter reads.
Read more: Justin Sun’s TRON stock is dying
Rainberry also agreed to be “permanently enjoined” from violating Section 17(a)(3) of the Securities Act 1933, which forbids engaging “in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser.”
The SEC’s legal counsel argues that the court should approve the settlement “because it is fair and reasonable and does not disserve the public interest.” It also dropped its claims against rapper DeAndre Cortez Way, otherwise known as Soulja Boy.
He was accused of illegally promoting the TRX tokens along with a host of other celebrities.
Justin Sun ‘pleased’ with SEC settlement
Sun noted that he was “very pleased” with the result, and that it brings him “closure.”
He said, “I will continue to focus on accelerating innovation in the United States and around the world and look forward to working with the SEC to develop guidance and regulations for crypto going forward.”
In contrast, former SEC Chief of Staff Amanda Fischer called the result “an embarrassment to the agency and to this industry.”
Read more: ‘Chinese Instagram’ Rednote bans Justin Sun’s accounts
The SEC launched its lawsuit against Sun back in 2023. Then, on January 16, 2025, the defendants requested to “stay” the case and pause the proceedings.
This was due to the recent SEC dismissal of another lawsuit against Coinbase, and a desire from the defendants to wait out the outcome of “interlocutory appeal proceedings” in the Coinbase case.
Repeated requests paused the lawsuit for over a year as both the SEC and Sun’s counsel held discussions. This was at a time when the Donald Trump administration began to reshape the crypto regulatory landscape, leading to accusations of corruption.
The SEC’s now seemingly dead case is one less headache for Sun, who currently has a litany of legal cases on the go.
Indeed, he’s currently in a legal battle with Bloomberg over his inclusion in the publisher’s Billionaire Index, and is suing music mogul David Geffen over a sculpture.
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