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2mo ago

SEC Files Deal to End Justin Sun Case With $10 Million Rainberry Penalty

The proposed judgment would dismiss remaining claims against Sun with prejudice pending court approval.

SEC drops fraud case against Justin Sun after $10M settlement
© Photo by GIUSEPPE CACACE/AFP via Getty Images
SEC settles long-running lawsuit against Justin Sun and Tron entities
Us sec drops justin sun lawsuit with $10m settlement from rainberry

Overview

  • Rainberry would pay a $10 million civil penalty and accept a permanent injunction barring deceptive practices in securities offerings, according to the filing.
  • The SEC would dismiss with prejudice all remaining claims against Justin Sun, the Tron Foundation, and the BitTorrent Foundation, and the filing signals a separate dismissal of claims against rapper Soulja Boy.
  • Rainberry agreed to the resolution on a neither-admit-nor-deny basis, which includes no finding of liability in the settlement papers.
  • The SEC’s 2023 complaint alleged unregistered TRX and BTT offerings, extensive wash trading to inflate TRX volume, and undisclosed celebrity promotions that generated millions.
  • The move reflects a shift in crypto enforcement under new SEC leadership and has drawn criticism from reform advocates and some Democrats who questioned potential political influence tied to Sun’s investments in a Trump-linked venture.