The US regulator SEC has sued Tron founder Justin Sun on charges of market manipulation. The hot development caused a sharp drop in 6 Justin Sun-linked altcoins. TRX price drops in double digits…
SEC sues Tron founder Justin Sun
The last target of the SEC, which is in hot contact with cryptocurrencies, was Justin Sun. The US regulator has sued the Tron founder on charges of selling unregistered securities and airdropping, fraud and market manipulation.
The SEC alleges that TRX and BTT are unregistered securities and that Sun has created a “comprehensive wash trading” program to increase volumes. Sun, Tron Foundation, BitTorrent Foundation, and BitTorrent (now known as Rainberry) have been sued for the sale of Tronix (TRX) and BitTorrent (BTT), which the press release describes as unregistered cryptocurrencies.
6 altcoins linked to Tron and Justin Sun fall hard
Tron (TRX) price fell 13% from $0.67 to $0.58 after the SEC announced charges against Justin Sun and its three companies, including Tron and BitTorrent. The trading volume stands at 421 million in the last 24 hours.
Tron-linked altcoins fell sharply. Sun token (SUN) and Hust (JST) dropped more than 8% after the announcement. Huobi (HT), the token of the crypto exchange led by Sun, fell 10%.
During the SEC lawsuit, Bitcoin and Ethereum are losing around 3%. cryptocoin.com As we have reported, the SEC has made serious moves towards the crypto money market in the last week.
SEC-Justin Sun lawsuit
The SEC is also suing Lindsay Lohan, Jake Paul, Soulja Boy, Lil Yachty, Ne-Yo, Akon and Michele Mason on charges of illegal propaganda for their alleged roles in promoting TRX and BTT without disclosing that they were paid for it.
According to the file, Sun said on social media that paid celebrities should disclose that they were paid, while “Sun himself arranged the payments to the celebrities and knew that these payments were not disclosed.”
“Justin Sun received illegal income”
The SEC said that between 4.5 million and 7.4 million TRX are traded daily in these trades. According to the press release, “This plan required a substantial supply of TRX, which Sun allegedly provided. As alleged, Sun also sold TRX to the secondary market, generating $31 million from illegal, unregistered offerings and token sales”.
SEC Chairman Gary Gensler said in a statement that the lawsuit is an example of the potential risks crypto investors may face with unregistered securities. At a key point, Tron Founder Justin Sun was allegedly market manipulation with TRX…
Gensler has this to say about market manipulation:
As alleged, Sun and its companies not only targeted US investors in their unregistered offers and sales, generating millions of illegal revenues at the expense of investors, but also coordinated wash trading on an unregistered exchange to manipulate the market on TRX.
Sun further encouraged investors to buy TRX and BTT by running a publicity campaign in which he and his celebrity supporters hid the fact that celebrities were getting paid for their tweets.
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