The U.S. Securities and Exchange Commission reached a settlement with Tron founder Justin Sun on Thursday. Under the agreement, Rainberry Inc., an affiliate of the Tron network, will pay a $10 million fine and is barred from future securities violations. The SEC had sued Sun and Tron in 2023, alleging federal securities law violations related to the sale and airdropping of TRX.
The settlement includes the dismissal of claims against Rainberry with prejudice, meaning the SEC cannot pursue similar actions for the same conduct in the future. All claims against Justin Sun, the Tron Foundation, and the BitTorrent Foundation will also be dismissed.
The proposed settlement is awaiting federal judge approval. The SEC, under previous leadership, initiated several lawsuits against crypto firms around the same period. The agency has since paused or dropped many of these cases.
