Home / Business and Economy / Crypto Fraud Case Settled: Sun Pays $10M Penalty
Crypto Fraud Case Settled: Sun Pays $10M Penalty
6 Mar
Summary
- SEC settled civil fraud case against Justin Sun.
- One of Sun's companies will pay a $10 million penalty.
- The SEC accused them of illegally distributing crypto assets.
A civil fraud case brought by the U.S. Securities and Exchange Commission (SEC) against cryptocurrency entrepreneur Justin Sun has been settled. Court filings revealed on Thursday that one of Sun's companies will pay a $10 million penalty to resolve the matter.
The SEC initially sued Sun and his companies, including the Tron Foundation and BitTorrent Foundation, in March 2023. Allegations included a scheme to illegally distribute the crypto assets Tronix and BitTorrent. The lawsuit also claimed that the defendants artificially inflated trading volumes for these assets.
Furthermore, the SEC accused Sun's entities of concealing payments made to celebrity endorsers. Neither Sun's legal representatives nor the SEC provided immediate comment on the settlement.
This resolution concludes a significant legal challenge initiated last year. The exact terms beyond the penalty are detailed in court filings.
