Justin Sun, the founder of Tron, has responded to the U.S. Securities and Exchange Commission’s (SEC) legal action against him.
Sun has taken to Twitter to defend himself and the Tron Foundation, emphasizing that the SEC’s complaint is a “civil complaint” that lacks merit.
The SEC’s civil complaint earlier today is just the latest example of actions it has taken against well known players in the blockchain and crypto space. We believe the complaint lacks merit, and in the meantime will continue building the most decentralized financial system.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) March 23, 2023
Sun has stated that the Tron Foundation believes that the complaint lacks merit and that they will continue to build the most decentralized financial system in the meantime. He acknowledges that the SEC’s regulatory framework for digital assets is still in its early stages and requires further development. Sun has expressed his eagerness to collaborate with governments and regulatory bodies globally to establish transparent guidelines for regulating and working with the cryptocurrency industry, given its important role.
The SEC’s legal action against Sun stems from his alleged involvement in the unregistered offer and sale of two crypto asset securities known as “TRX” and “BTT.” Sun is accused of working through several companies that he owns and controls, including Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry, Inc., to distribute billions of TRX and BTT to the public and create active secondary markets for trading them.
The SEC’s press release on Wednesday outlined allegations of selling and distributing unregistered securities, fraud, and market manipulation. The news has had an immediate impact on the market, with Tron’s TRX falling over 10% following the announcement.
Sun’s response highlights the need for regulatory bodies to collaborate with the cryptocurrency industry to establish transparent guidelines and regulations that can help protect investors and promote the growth of the industry. With many countries introducing new regulations to govern the space, it remains to be seen how the legal action against Sun will play out. Nonetheless, the Tron Foundation is committed to continuing its work in building a decentralized financial system.
Read more:
- Justin Sun Earns $3.3 Million By Buying USDC With USDT During Depegging
- TRON’s TRX Falls Over 10% Following SEC Charges Against Justin Sun