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SEC Moves to Settle Justin Sun of Tron Case With $10M Penalty

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The U.S. Securities and Exchange Commission (SEC) moved Wednesday to settle its high-profile enforcement case against Justin Sun and his affiliated companies, proposing a $10 million civil penalty.

If approved by a federal judge, the judgment would dismiss all remaining claims against the TRON founder with prejudice, marking a decisive end to the years-long legal battle.

Key Takeaways:
  • Settlement Terms: Rainberry Inc. agrees to a $10 million penalty and an injunction against deceptive practices without admitting wrongdoing.
  • Case Dismissal: All claims against Justin Sun, the Tron Foundation, and the BitTorrent Foundation will be dismissed with prejudice.
  • Regulatory Signal: The deal represents a significant de-escalation by the SEC following recent leadership changes and industry pushback.

Discover: The best meme coins on Solana

SEC Deal: A $10 Million Resolution to Years of Litigation

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According to a proposed final judgment filed yesterday in the U.S. District Court for the Southern District of New York, Rainberry Inc., the company behind the BitTorrent protocol, will pay the $10 million civil penalty.

The company also agreed to a permanent injunction barring it from violating anti-fraud provisions in future securities offerings. Crucially, Rainberry accepted the settlement without admitting or denying the SEC’s allegations.

In exchange for this penalty, the SEC agreed to dismiss all outstanding claims against Sun personally, as well as the Tron Foundation and BitTorrent Foundation. The dismissal is “with prejudice,” meaning the regulator cannot refile these specific charges against Sun or his foundations in the future. The agreement effectively clears Sun’s personal liability in the matter.

Sun confirmed the development on social media on today. In a statement on X, he noted that the resolution “brings closure” and declared his intention to focus on “accelerating innovation in the U.S. and around the world.”

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Context: From Celebrity Charges to Political Pivots

The SEC originally sued Sun in March 2023, alleging the unregistered sale of TRX and BTT tokens.

The regulator’s complaint was extensive, accusing Sun of directing wash trading to artificially inflate TRX volumes and orchestrating undisclosed payments to celebrities like Lindsay Lohan and Jake Paul for promotion.

Six of those celebrities settled in 2024 for roughly $400,000 combined.

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This settlement arrives amid a broader shift in SEC enforcement strategy following the presidential inauguration.

Democratic lawmakers, including Rep. Maxine Waters, criticized the move in a recent letter, suggesting the agency is retreating from crypto enforcement cases involving figures with political connections.

Sun reportedly invested heavily in World Liberty Financial tokens and attended events associated with the new administration prior to this resolution.

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What the Justin Sun Case Says About the SEC Now

The $10 million figure is relatively modest compared to the billions sought in other recent crypto cases. It signals that the current SEC is prioritizing case clearance over maximum punitive damages, a sharp departure from the “regulation by enforcement” era of 2023.

This shift aligns accordingly with a maturing market structure. As recently discussed on Cryptonews, the biggest winners of the next cycle may be the most regulated entities that successfully navigate the government’s requirements.

If this pragmatic approach continues, expect other stalled enforcement actions to resolve quickly in the coming months, likely with similar “no admission of guilt” structures.

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The post SEC Moves to Settle Justin Sun of Tron Case With $10M Penalty appeared first on Cryptonews.

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Crypto World

Bitcoin Traders Bet On Sub-$66K BTC In April Due To Rising Fear

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Bitcoin Traders Bet On Sub-$66K BTC In April Due To Rising Fear

Key takeaways:

  • Bearish sentiment is rising as Bitcoin options professional traders lose confidence that the $66,000 level will hold for long.

  • The exit of David Sacks as the Crypto and AI czar and a lack of a clear US Strategic Bitcoin Reserve plan added to investors’ doubts.

Bitcoin (BTC) fell to $65,530 on Friday, an 8% decline from the $71,300 level seen on Thursday. This move wiped out over $210 million in leveraged bullish Bitcoin futures and left most call (buy) options worthless during the $18.6 billion monthly expiry. Traders now anticipate a 53% chance that Bitcoin will stay below $66,000 by April 24.

April 24 Bitcoin option prices at Deribit. Source: Deribit

On Friday, the April 24 Bitcoin $66,000 put (sell) options traded at 0.0566 BTC or roughly $3,730. With a 53% implied probability of Bitcoin trading below $66,000 by late April, the mood remains decidedly bearish following the increased uncertainty in the US and Israel-Iran war, pushing traders into a risk-averse mode.

US inflation threats and stalling crypto, Bitcoin legislation

Rising oil prices and a potential $200 billion in extra US military spending led investors to demand higher returns on government bonds and dragged the S&P 500 to its lowest levels since September 2025. West Texas Intermediate (WTI) oil surged to $100 on Friday, while 5-year Treasury yields reached 4.07%, up from 3.72% three weeks prior.

US 5-year Treasury yield (left) vs. S&P 500 (right). Source: TradingView

Inflationary fear and weaker corporate earnings perspectives alone cannot explain Bitcoin’s 20% underperformance against the S&P 500 in 2026. Other factors are likely at play, including investors’ discomfort over the lack of progress on the US Bitcoin Strategic Reserve.

David Sacks has stepped down from his role as the Trump administration’s crypto and AI czar. While Sacks remains an advisor on the President’s Council on Science & Technology, his departure follows earlier comments that inflated Bitcoin investors’ expectations. Sacks had previously hinted that the US could acquire more Bitcoin through budget-neutral methods without raising taxes.

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Related: US lawmakers publish crypto tax proposal without Bitcoin tax exemption

Bitcoin 30-day options delta skew (put-call) at Deribit. Source: Laevitas

The Bitcoin options delta skew jumped to 15% on Friday, showing that put options are trading at a significant premium relative to call instruments. In balanced market conditions, this metric usually ranges between -6% and +6%. The current level indicates a lack of conviction among whales that the $66,000 level will hold. Fear has largely dominated the Bitcoin options market since mid-January.

Bitcoin options expiry favored neutral-to-bearish strategies

Friday’s monthly options expiry at $68,610 proved unfavorable for neutral-to-bullish strategies, as 97% of call options became void. Bears gained the upper hand as put options at $69,000 or higher surpassed $2 billion in open interest. Critically, part of Friday’s downward move reflects a growing unwillingness among traders to maintain Bitcoin exposure over the weekend.

Crypto markets cut risk on Friday due to uncertainty. Source: X/WhalePanda

X social platform user WhalePanda, suggested that the crash in risk markets anticipates President Trump making “another dumb escalating move” after US markets close. Consequently, the current fear seen in the options market could reverse if no major geopolitical events occur before Monday.

During bearish cycles, traders often rush for the exits at the mere sight of any event that could be deemed negative. Investors should not take Bitcoin’s implied odds at face value, as these metrics are heavily impacted by recent news and headlines. However, expectations could shift more favorably if Iran effectively releases a counter-offer to the US peace proposal.