Justin Sun’s SEC Battle Takes a Twist: Case on Hold for Possible Deal

The request, filed on February 26 in a Manhattan court, aims to give both sides time to discuss a possible settlement.

According to the filing, the SEC and Sun “jointly move to stay this case to allow the Parties to explore a potential resolution”. If the court approves the request, they will provide a joint status update within 60 days.

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The SEC’s lawsuit against Sun, filed in March 2023, accuses him and three of his companies—the Tron Foundation, the BitTorrent Foundation, and Rainberry Inc.—of selling unregistered securities through the Tron and BitTorrent BTT $0.000000742 tokens.

The agency also claims Sun engaged in market manipulation by artificially inflating trading activity for these tokens.

Sun has pushed back against the lawsuit, arguing that the SEC does not have jurisdiction over the token sales since they primarily took place outside the US. The SEC, however, maintains that Sun frequently traveled within the country, which gives the agency the authority to take action.

This request comes as the SEC reportedly prioritizes delaying crypto-related cases that have upcoming deadlines.

Recently, Block Inc., Jack Dorsey's online payments firm, was in talks with the New York State Department of Financial Services (NYDFS). What was the company looking to settle? Read the full story.