The U.S. Securities and Exchange Commission (SEC) has officially ended its fraud case against crypto entrepreneur Justin Sun and his affiliated companies after reaching a settlement agreement. The case, which had been ongoing since 2023, concluded with Sun agreeing to pay a $10 million civil penalty for violating federal securities laws.
The lawsuit originally targeted Sun along with the Tron Foundation, BitTorrent Foundation, and Rainberry. Regulators accused the group of manipulating the markets for TRON (TRX) and BitTorrent (BTT) tokens. According to the SEC, the tokens were also sold as unregistered securities, which allegedly violated U.S. federal securities regulations.
Under the terms of the settlement, Sun will pay the civil penalty while the remaining claims against him and his companies will be dismissed with prejudice. This legal term means the case is permanently closed and cannot be brought back or refiled in the future.
Shortly after the news broke, Sun addressed the development publicly on social media, describing the resolution as a moment of closure and expressing optimism about the road ahead. He stated that the settlement allows him and his companies to move forward and focus on future developments.
The SEC initially filed the lawsuit in early 2023 during the tenure of then-Chair Gary Gensler. Regulators alleged that Sun generated more than $31 million in illegal proceeds through market manipulation and promotional campaigns tied to TRX and BTT. Several celebrities who helped promote the tokens were also mentioned in the complaint.
However, enforcement activity in the crypto sector shifted significantly after Donald Trump became U.S. president in 2025. His administration pushed a more crypto-friendly stance, aiming to position the United States as a global hub for digital assets. As a result, a number of earlier SEC investigations and lawsuits against crypto firms were either paused or settled.
Despite the case closure, the settlement has sparked criticism from some policymakers. Democratic Senator Elizabeth Warren criticized the deal, arguing that regulators should remain independent and avoid political influence. She warned that the SEC should not become a tool for powerful political allies or wealthy insiders.
Former SEC official Amanda Fischer also criticized the outcome, describing the settlement as damaging to both the agency’s credibility and the broader crypto industry.
Meanwhile, the market reaction to the news has been relatively muted. At the time of reporting, TRX was trading around $0.28 and showed little immediate price movement following the announcement. The token had already experienced a minor decline a day earlier alongside a broader pullback in Bitcoin.
The settlement effectively closes one of the SEC’s most prominent crypto enforcement cases, marking another shift in how regulators and the digital asset industry are navigating legal disputes in the evolving regulatory environment.