Crypto entrepreneur Justin Sun has settled a long-running lawsuit with the U.S. Securities and Exchange Commission, paying $10 million through his company Rainberry to resolve allegations tied to TRX and BTT token sales.
The SEC had accused Sun and affiliated entities—including the Tron Foundation, BitTorrent Foundation, and Rainberry—of selling unregistered securities and engaging in manipulative trading practices. The commission also claimed Sun paid celebrities like Akon, Lindsay Lohan, and Jake Paul to promote BTT without disclosing their compensation.
A public SEC letter on February 5 confirmed that Sun and his companies neither admitted nor denied the allegations, but the claims would be dropped once the settlement was paid. Sun has maintained that the SEC’s complaints “lack merit.”
In a post on X, Sun said the resolution “brings closure” and that he will continue focusing on crypto innovation while working with the SEC on guidance and regulations.
The settlement comes amid scrutiny over Sun’s financial connections to crypto ventures linked to former President Donald Trump, prompting some Democratic lawmakers—including Representatives Maxine Waters, Ritchie Torres, and Stephen Lynch—to request a review of the case.
The move also reflects the SEC’s more pro-crypto stance under the Trump administration, which has previously dropped several enforcement actions against major industry players.
