A major development has emerged in one of the crypto industry’s long-running legal battles. According to a filing in the U.S. District Court for the Southern District of New York, the SEC has decided to drop the lawsuit it filed in 2023 against Justin Sun and the Tron Foundation. The move comes at a time when the regulatory stance toward the crypto sector in the United States appears to be shifting.
Rainberry, formerly known as BitTorrent Inc. and a central company in the case, chose to settle the matter. The firm agreed to pay a $10 million civil penalty without admitting or denying the allegations. Rainberry also committed to avoiding misleading market practices related to securities in the future.
The SEC had previously accused Justin Sun of offering Tron (TRX) and BitTorrent (BTT) tokens as unregistered securities and allegedly manipulating TRX’s price through wash trading. The case also involved several celebrities who promoted the tokens, including Lindsay Lohan and Jake Paul, many of whom had already settled earlier by paying fines.
