Justin Sun’s Legal Woes Send TRX Into Freefall: Details

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Justin Sun, founder of blockchain platform TRON, and three affiliated firms are facing a lawsuit from the US Securities and Exchange Commission (SEC) over allegations of illegal sales of Tron (TRX) and BitTorrent (BTT) cryptocurrencies.

The lawsuit has caused a 6.1% drop in the value of TRX. The SEC has warned crypto investors of the potential risks associated with unregistered securities. The lawsuit accuses Sun and his companies of distributing billions of TRX and BTT to the public without registering the offers and sales with the SEC.

The SEC further alleges that Sun manipulated TRX’s price through wash trading, directing his team to engage in hundreds of thousands of TRX wash trades between accounts that Sun ultimately controlled. Sun also allegedly paid celebrities to promote TRX and BTT without disclosing that they had been paid.

The SEC claims that Sun and his companies generated millions in illegal proceeds at the expense of investors.

According to the SEC, Sun and his affiliated firms focused on American investors in their unregistered sales and offers, resulting in millions of dollars in illicit profits at the expense of investors.

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