SEC Drops Lawsuit Against Justin Sun, Rainberry to Pay $10 Million Civil Penalty

BlockBeats News, March 6th. The Southern District of New York Federal Court submitted a final judgment on Thursday, stating that the U.S. Securities and Exchange Commission (SEC) has dropped the charges against Tron Foundation founder Justin Sun, the Tron Foundation, and the BitTorrent Foundation for the year 2023. Previously, companies associated with Justin Sun, including Rainberry (formerly BitTorrent Inc.), developed the BitTorrent protocol and the BTT cryptocurrency token, and were required to pay a $10 million civil penalty to the SEC. The SEC also accused Justin Sun and his three related companies of conducting unregistered sales of TRX and BTT tokens deemed as securities.

According to the settlement agreement, the SEC will drop all charges against Justin Sun, while Rainberry, without admitting or denying the allegations, agreed to pay a $10 million civil penalty. The settlement agreement is subject to court approval. Justin Sun posted on Platform X expressing his "great joy" at the SEC's withdrawal of the lawsuit.

Since Trump's return to the White House, the SEC has dropped or suspended at least a dozen cases against cryptocurrency companies, including previous lawsuits against Coinbase and Binance.