Tron’s founder, Justin Sun, has been served a summons by the U.S. Securities and Exchange Commission (SEC) regarding the civil complaint filed against him last month. The SEC accuses Sun of orchestrating an unregistered sale and offer of a crypto asset security and engaging in manipulative trading schemes. Youtuber Austin Mahone and rapper Soulja Boy, whose real name is DeAndre Cortez Way, have also been summoned.
The court summons has been issued to Sun, Mahone, and Soulja Boy, giving them 21 days to contact SEC attorney Adam Gottlieb. This summons is related to a recent lawsuit filed against the trio due to the SEC’s civil case alleging that Sun unlawfully offered and sold tron (TRX) and bittorrent token (BTT). The SEC claims that Sun organized the offer and sale of TRX and BTT while participating in manipulative wash trading of TRX to create a false impression of legitimate investor interest.
The securities regulator contends that Sun conducted these schemes through various organizations he controls, including Rainberry, Bittorrent Foundation Ltd., and the Tron Foundation. Mahone is charged with illegally promoting TRX on his Twitter account to his 9.1 million followers, while Soulja Boy faces similar allegations for promoting TRX to his 5.2 million Twitter followers.
If the defendants fail to respond within the specified timeframe, a default judgment will be entered against them for the relief demanded in the complaint. Although Sun’s exact location is unclear, he recently claimed to be in Hong Kong on Twitter. Gottlieb’s court summons lists Sun’s address as Singapore. Besides Soulja Boy and Mahone, several other celebrities such as Lindsay Lohan, Ne-Yo, Kendra Lust, Jake Paul, and Akon were accused of unlawfully promoting TRX. All have settled with the U.S. regulator except for Soulja Boy and Mahone.
On Twitter, Sun commented on the lawsuit and stated that his team believes the complaint “lacks merit.” He also asserted that the SEC’s regulatory framework for digital assets is still in its infancy and requires further development. Additionally, the Tron founder expressed his willingness to “collaborate with governments and regulatory bodies globally.”
If the defendants cannot be served with the summons, the court may need to explore alternative methods of notifying them. It remains to be seen what the outcome of this SEC case will be for Tron founder Justin Sun.
It is worth noting that this case is part of a broader regulatory crackdown on cryptocurrencies in the United States. The SEC has been actively pursuing cases against companies and individuals who violate securities laws, and this latest case is just one example of their efforts to protect investors and maintain the integrity of the financial markets. As the regulatory landscape for digital assets continues to evolve, it is likely that we will see more cases like this in the future.