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Justin Sun nears $10M deal to settle SEC’s Tron lawsuit

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Justin Sun nears $10M deal to settle SEC's Tron lawsuit

Controversial Tron founder Justin Sun has been asked to pay a $10 million fine as part of a lawsuit settlement with the US Securities and Exchange Commission (SEC). 

The SEC’s legal counsel informed Judge Edgardo Ramos yesterday of the arrangement made between the government body and Sun’s Rainberry (formerly BitTorrent). 

The settlement, which still requires court approval, would see the SEC drop all claims brought against Sun, his firms, and his token, Tron (TRX). The regulator had made allegations of wash trading, price manipulation, and the sale of unregistered securities. 

“The remaining claims against Rainberry would be dismissed with prejudice. The final judgment would also dismiss all claims against Justin Sun, Tron Foundation, and BitTorrent Foundation,” the letter reads.

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Read more: Justin Sun’s TRON stock is dying

Rainberry also agreed to be “permanently enjoined” from violating Section 17(a)(3) of the Securities Act 1933, which forbids engaging “in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser.”

The SEC’s legal counsel argues that the court should approve the settlement “because it is fair and reasonable and does not disserve the public interest.” It also dropped its claims against rapper DeAndre Cortez Way, otherwise known as Soulja Boy.

He was accused of illegally promoting the TRX tokens along with a host of other celebrities.

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Justin Sun ‘pleased’ with SEC settlement

Sun noted that he was “very pleased” with the result, and that it brings him “closure.” 

He said, “I will continue to focus on accelerating innovation in the United States and around the world and look forward to working with the SEC to develop guidance and regulations for crypto going forward.”

In contrast, former SEC Chief of Staff Amanda Fischer called the result “an embarrassment to the agency and to this industry.”

Read more: ‘Chinese Instagram’ Rednote bans Justin Sun’s accounts

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The SEC launched its lawsuit against Sun back in 2023. Then, on January 16, 2025, the defendants requested to “stay” the case and pause the proceedings. 

This was due to the recent SEC dismissal of another lawsuit against Coinbase, and a desire from the defendants to wait out the outcome of “interlocutory appeal proceedings” in the Coinbase case.

Repeated requests paused the lawsuit for over a year as both the SEC and Sun’s counsel held discussions. This was at a time when the Donald Trump administration began to reshape the crypto regulatory landscape, leading to accusations of corruption.

The SEC’s now seemingly dead case is one less headache for Sun, who currently has a litany of legal cases on the go.

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Indeed, he’s currently in a legal battle with Bloomberg over his inclusion in the publisher’s Billionaire Index, and is suing music mogul David Geffen over a sculpture. 

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Crypto World

US National Cyber Strategy Pledges Support For Crypto And Blockchain

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Cryptocurrencies, United States, AI, Donald Trump, Quantum Computing

Crypto industry executives are combing through US President Donald Trump’s National Cyber Strategy after it was released on Friday, searching for hints about what it could signal for government support of the crypto industry.

“Crypto and blockchain are explicitly named as technologies to be ‘protected and secured.’ This is a first for any US cybersecurity strategy,” Galaxy Digital’s head of firmwide research Alex Thorn said in an X post on Friday.

Crypto and blockchain were mentioned once in the six-page report:

“We will build secure technologies and supply chains that protect user privacy from design to deployment, including supporting the security of cryptocurrencies and blockchain technologies.”

However, industry executives have also been interpreting other parts of the document to see how they relate to crypto.

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Cryptocurrencies, United States, AI, Donald Trump, Quantum Computing
Source: Mark Chadwick

Thorn pointed to a section pledging to “uproot criminal infrastructure and deny financial exit and safe haven.” “This language could easily justify crackdowns on mixers, privacy coins, and unregulated off-ramps,” he said.

Bitcoin VC points out that quantum has been taken “seriously”

Castle Island Ventures founder Nic Carter, who has been vocal about the threat of quantum computing to Bitcoin (BTC) in recent times, pointed to the section saying the government “will accelerate the modernization, defensibility, and resilience of federal information systems by implementing cybersecurity best practices, post-quantum cryptography, zero-trust architecture, and cloud transition.”

“Sure seems like they’re taking quantum seriously. Nothing to worry about, I’m sure,” Carter said in an X post.

It comes as the crypto industry continues to debate about how close quantum computing is to being a serious threat to Bitcoin. On Feb. 15, Carter said that major Bitcoin-holding institutions may eventually lose patience with Bitcoin developers for not addressing quantum computing concerns quickly enough.

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Trump points to the next generation as a priority

Trump said that the National Cyber Security outlines his priorities for “ensuring that America remains unrivaled in cyberspace.” Artificial intelligence was a key focus of the report.

“We will secure the AI technology stack—including our data centers—and promote innovation in AI security,” it said.

Related: Community banks and crypto industry ‘are allies’ in CLARITY Act debate: Exec

Trump also emphasized the importance of recruiting the next generation of workers in the cyber workforce to “design and deploy exquisite cyber technologies and solutions.”

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The US typically releases a national cybersecurity strategy every administration, outlining the government’s priorities for emerging technologies.

Magazine: The debate over Bitcoin’s four-year cycle is over: Benjamin Cowen