SEC Sues Tron Founder Justin Sun Over Cryptocurrency Sale | – #SEC #Sues #Tron #Founder #Justin #Sun #Cryptocurrency #Sale
NEW YORK, March 22 (Reuters) – USA The Securities and Exchange Commission on Wednesday sued Chinese cryptocurrency entrepreneur Justin Sun and other defendants, accusing them of illegally selling cryptocurrency securities and conspiring to artificially inflate trading volume in cryptocurrencies.
Starting in August 2017, the SEC alleged that Sun and its companies, Tron Foundation Limited, BitTorrent Foundation Limited and Rainberry Inc, engaged in a scheme to distribute billions of cryptocurrencies known as Tronix (TRX) and BitTorrent (BTT). SEC, interested parties to it social in the media, incl USAinvolved the use of “rewards programs” that direct investors to promote tokens located in .
TRX and BTT were sold as securities and therefore their sale had to be registered with the SEC, the regulator said in a complaint filed in Manhattan federal court.
The agency also accused eight celebrities, including Lindsay Lohan and Jake Paul, of illegally promoting these assets, giving them compensation did not disclose that it was paid.
Sun also violated anti-fraud and anti-market manipulation laws by setting up a scheme to inflate the volume of trading seen in TRX on the secondary market, the SEC said. At least 2018Between April 2019 and February 2019, he directed his employees to trade more than 600,000 TRX washers between two accounts he controlled. 31 million from illegal, unregistered offerings and token sales, the SEC said dollars earned income.
Other celebrities accused were DeAndre Cortez Way (Soulja Boy), Austin Mahone, Michele Mason (Kendra Lust), Miles Parks McCollum (Lil Yachty), Shaffer Smith (Ne-Yo) and Aliaune Thiam (Akon).
All but Cortez Way and Mahone agreed to pay more than $400,000 to settle the charges without admitting or denying the SEC’s findings.
Attorneys for the celebrities and Rainberry did not immediately respond to requests for comment. Sun’s lawyer could not be immediately identified.
Reporting by Chris Prentice and Jonathan Stempel in New York; Edited by Lisa Shumaker
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2023-03-23 01:46:27
Source – reuters
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