US regulators targeted Tron founder Justin Sun in late March, shortly after the investigation into Binance CEO CZ and its executives. The founder allegedly manipulated the altcoin market with TRX. In a heated development, he was given three weeks to respond to the case.
Justin Sun has 21 days to respond to SEC lawsuit
Tron founder Justin Sun reportedly received a call to respond to the Securities and Exchange Commission (SEC) lawsuit filed against him in the Southern District of New York on March 22.
cryptocoin.com As cited in the lawsuit, the lawsuit alleges that Sun, through its companies Tron Foundation, BitTorrent Foundation, and Rainberry Incorporated, sold and airdropped unregistered securities, engaged in fraud and market manipulation, and manipulated the TRX market to create the appearance of legitimate investor interests.
According to the SEC, Sun has 21 days to respond to the call sent to two locations in Singapore, including the residential and office address. Failure to respond in a timely manner may result in the court ruling in favor of the plaintiff.
Celebrities like Jake Paul and Akon accused of secretly marketing altcoins
The SEC lawsuit also named two musicians named Austin Mahone and DeAndre Cortez Way, known as Soulja Boy, who were allegedly involved in the promotion of the two cryptocurrencies without disclosing their compensation. Names such as Lindsay Lohan, Jake Paul, Akon, and Michele Mason are being sued for being paid undisclosed money for their role in altcoin marketing.
The names of Mahone and Soulja Boy were named in the final subpoena, while several celebrities named in the lawsuit settled their own charges. Bloomberg previously reported that Sun is the majority shareholder of Huobi Global, but denied owning about 60 percent of the shares.
SEC chairman Gary Gensler described Sun as someone who not only targets US investors, but also coordinates wash trading on TRX. He added that Sun encouraged investors to buy TRX and BTT by running a promotional campaign in which he and his celebrity supporters concealed the fact that celebrities were getting paid for their tweets.
What does Justin Sun think?
Sun first responded to the allegations in March, saying, “It’s just the latest example of his actions against well-known players in the blockchain and crypto space. “We believe the complaint is unfounded and meanwhile we will continue to build the most decentralized financial system.”
However, he also stated that he was “willing” to collaborate with regulators and governments “who are committed to creating transparent guidelines to regulate” the crypto industry.
The Tron founder has yet to comment on the 21-day deadline given by the SEC. His most recent statement was the ‘4’ call he made on Twitter to publish the news claiming that he was arrested due to this case.
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