The protracted legal battle between the U.S. Securities and Exchange Commission and the founder of TRON has finally reached a new turning point as the U.S. financial regulator decided to drop key charges related to the sale of TRX and BTT Token Sale . According to the final ruling recorded in the U.S. District Court for the Southern District of New York on Thursday, the charges that the SEC brought in 2023 against Justin Sun , along with two related organizations, the TRON Foundation and the BitTorrent Foundation , have been officially dismissed.
Although the core charges were dropped, another company linked to Justin Sun, Rainberry – formerly known as BitTorrent Inc. and the developer of the BitTorrent protocol and the BTT Token under Sun's ownership – still had to pay a $10 million civil penalty to the SEC. This agreement was part of a settlement reached after years of litigation.
The case originated in March 2023 when the US Securities and Exchange Commission accused Justin Sun and related entities of conducting an unregistered securities offering using two Token , TRX and BTT. According to the US regulator, these Token were promoted and distributed to the market without complying with federal securities registration regulations. Additionally, Sun was accused of manipulating the price of TRX through "wash trading"—a practice of self-buying and selling between accounts to create artificial volume and inflate asset value.
Furthermore, the SEC also alleges that Justin Sun paid numerous celebrities to promote the aforementioned Token but failed to disclose that they received compensation for the promotional posts. The list of accused includes a total of eight celebrities from the entertainment and social media industries, including actress Lindsay Lohan and boxing influencer Jake Paul . According to the SEC, these individuals engaged in "touting"—promoting cryptocurrency assets—without disclosing that they were paid for the marketing.
Of the eight celebrities named, six have settled with the SEC by paying a total of approximately $400,000, including returns, interest, and civil penalties, while neither admitting nor denying the charges. Two who did not participate in the initial settlement were rapper Soulja Boy and singer Austin Mahone .
According to the latest legal filings submitted to the court, the defendants in the case – including Justin Sun and related entities – have agreed to the settlement terms offered by the SEC but neither admits nor denies the original allegations. In addition to the $10 million fine, Rainberry also pledged not to engage in any future securities-related fraud or market manipulation. This ruling still requires formal court approval to take full effect.
