The U.S. Securities and Exchange Commission (SEC) has moved to partially resolve its enforcement case against crypto entrepreneur Justin Sun. A proposed final judgment filed in New York federal court requires Rainberry Inc., the company behind the BitTorrent protocol, to pay a $10 million civil penalty.
In exchange for the penalty and an injunction against deceptive securities offering practices, the SEC would dismiss its remaining claims against Sun and affiliated entities, including the Tron Foundation and BitTorrent Foundation. These dismissals would be "with prejudice," preventing the agency from refiling the same claims.
This proposed settlement aims to close a case initiated in 2023, which accused Sun and his companies of selling unregistered securities and market manipulation involving the TRX token through wash trading. Rainberry has agreed to the settlement without admitting or denying the allegations.
The resolution comes as U.S. regulators appear to be reevaluating their approach to crypto enforcement. The proposed judgment awaits approval from a federal judge.