SEC sues Justin Sun for Unregistered Securities and Market Manipulation

SEC sues Justin Sun for Unregistered Securities and market manipulation

The founder of Tron, Justin Sun, and the Tron Foundation have been charged by the U.S. Securities and Exchange Commission (SEC) for offering unregistered securities and market manipulation.

The SEC claims that TRX and BTT were offered as securities, violating securities laws

 Sun is also accused of manipulating the price of TRX on crypto exchanges using different accounts, including his father’s account, involved in daily wash trading activities.

In addition, a group of influencers, including Lindsay Lohan, Jake Paul, and Lil Yachty, were charged for promoting Tron without disclosing that they were being compensated for their endorsements.

Sun allegedly instructed these celebrities to not disclose their involvement in the campaign, using employees as messengers.

Most of the celebrities have settled with the regulator, paying more than $400,000 in disgorgement, interest, and penalties.

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