Justin Sun, the mastermind behind the popular cryptocurrency platform Tron, has reportedly been summoned to respond to a lawsuit filed by the US Securities and Exchange Commission (SEC). The lawsuit, filed on March 22nd in the Southern District of New York, gives Sun a 21-day window to respond.
Sun, who is believed to reside in either Singapore or Hong Kong, has been charged with “fraudulently manipulating the secondary market for TRX through extensive wash trading.” In simpler terms, Sun is accused of making trades without a change in actual ownership. Furthermore, the SEC claims that Sun should have registered the sales of TRX and BTT with the agency, as they were allegedly sold as securities.
Adding to the controversy, the SEC alleges that Sun secretly paid celebrities to promote TRX and BTT without disclosing their compensation. Eight celebrities, including Lindsay Lohan and Akon, were named in the probe, but have since settled with the SEC.
Sun, however, remains defiant. In a statement released in March, he argued that the complaint lacks merit and vowed to continue building “the most decentralized financial system.” As the crypto world watches closely, only time will tell how this high-profile case unfolds.