The U.S. Securities and Exchange Commission has moved to partially resolve its enforcement case against crypto entrepreneur Justin Sun, proposing a settlement that would see BitTorrent owner Rainberry pay a $10 million civil penalty.
The proposed judgment, filed in federal court in New York, would dismiss the SEC’s remaining securities and market-manipulation claims against Sun and affiliated entities including the Tron Foundation and BitTorrent Foundation.
Under the agreement, Rainberry would accept an injunction barring deceptive practices in securities offerings and pay the penalty, resolving allegations tied to the alleged sale of unregistered securities and wash trading of the TRX token.
Rainberry agreed to the settlement without admitting or denying the allegations, and the proposed order still requires approval from a federal judge in the Southern District of New York.
The case was first brought in 2023 and accused Sun and his companies of manipulating the market for the TRX token through wash trading while selling unregistered securities.
“Even though the SEC had overwhelming evidence against Sun and his crypto businesses, the Commission today entered into a sweetheart settlement,”
Said Better Markets policy director and COO, Amanda Fischer.
The proposed resolution comes amid a broader shift in U.S. crypto enforcement following the departure of former SEC chair Gary Gensler, whose tenure was marked by aggressive regulatory actions across the digital-asset sector.