US Senator Slams SEC's $10 Million Settlement With Justin Sun, Accuses Trump Administration of 'Favoritism to Crypto Allies'

BlockBeats News, March 6th - U.S. Senator Elizabeth Warren publicly criticized the U.S. Securities and Exchange Commission for reaching a $10 million settlement with Justin Sun and dropping related charges, stating that the regulatory agency is becoming a "watchdog" for Donald Trump and his crypto allies.

According to reports, the settlement involved a case related to Rainberry stemming from the SEC's 2023 lawsuit against Justin Sun and his companies, alleging illegal issuance of digital assets, manipulation of trading volume, and concealment of celebrity endorsement payments, among other actions. Justin Sun neither admitted nor denied the charges in the agreement.

Warren stated that Justin Sun had invested around $90 million in crypto projects related to the Trump family, including purchasing at least $75 million worth of WLFI tokens and around $18 million of TRUMP Meme Coin, emphasizing that any crypto legislation advanced by Congress must prevent the president from "profiting through crypto businesses."

Reports indicate that since Trump returned to the White House in 2025, the SEC has suspended or dropped multiple crypto industry cases, including some enforcement actions against Coinbase, Ripple Labs, and Kraken, signaling a clear shift in regulatory stance. Justin Sun stated that the settlement closes the case and that he will continue to drive crypto innovation in the future while collaborating with regulatory agencies to establish industry rules.