The SEC Expands Case Against Justin Sun Citing His Extensive Travel in US

By: Eva Baxter

The US Securities and Exchange Commission (SEC) updated its lawsuit against blockchain entrepreneur Justin Sun and his associated entities on April 18. The regulator expanded its allegations by arguing that Sun's frequent visits to the US should give it the necessary jurisdiction to pursue legal action.

As per the claim, Sun performed several unregistered offers and sales of BTT and TRX tokens while he was in the US. Supposedly, Sun spent over 380 days in America between 2017 and 2019, making business trips to key destinations like New York City, Boston, Massachusetts, and San Francisco to conduct operations on behalf of the Tron Foundation and the BitTorrent Foundation.

In addition to this, the SEC accused Sun and his companies of being engaged in a wash trading scheme on a now-defunct cryptocurrency exchange Bittrex. It highlighted that Bittrex is rooted in the US to support its claim of personal jurisdiction over Sun and the defendants. Moreover, the regulator revealed Sun's personal communication and document sharing with Bittrex in 2018 to have the TRX cryptocurrency listed.

The amplified allegations are a response to an appeal filed by Sun in March to dismiss the SEC case on the grounds that the US does not have personal jurisdiction. The SEC started legal proceedings against Sun and his companies in March 2023, originally arguing that sales were targeted at investors in New York's Southern District and the celebrities promoting the offers reached individuals in the US via social media.