SEC Charges Crypto Entrepreneur Justin Sun and his Companies for Fraud and Other Securities Law Violations

The Securities and Exchange Commission today announced charges against crypto asset entrepreneur Justin Sun and three of his wholly-owned companies, Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc. (formerly BitTorrent), for the unregistered offer and sale of crypto asset securities Tronix (TRX) and BitTorrent (BTT). The SEC also charged Sun and his companies with fraudulently manipulating the secondary market for TRX through extensive wash trading, which involves the simultaneous or near-simultaneous purchase and sale of a security to make it appear actively traded without an actual change in beneficial ownership, and for orchestrating a scheme to pay celebrities to tout TRX and BTT without disclosing their compensation.

The SEC simultaneously charged the following eight celebrities for illegally touting TRX and/or BTT without disclosing that they were compensated for doing so and the amount of their compensation.

  • Lindsay Lohan
  • Jake Paul
  • DeAndre Cortez Way (Soulja Boy)
  • Austin Mahone
  • Michele Mason (Kendra Lust)
  • Miles Parks McCollum (Lil Yachty)
  • Shaffer Smith (Ne-Yo)
  • Aliaune Thiam (Akon)

Source: SEC Charges Crypto Entrepreneur Justin Sun and his Companies for Fraud and Other Securities Law Violations