Justin Sun Reaches $10M Settlement with SEC, Ending Three-Year Legal Battle

TLDR A three-year legal battle between the SEC and Tron’s founder Justin Sun concludes with a $10 million settlement agreement Rainberry Inc. will cover the financial penalty while allegations against Sun personally, Tron Foundation, and BitTorrent Foundation are dropped Neither Sun nor his affiliated entities admitted wrongdoing as part of the agreement The settlement comes after Sun committed $75 million to World Liberty Financial, a Trump-associated cryptocurrency venture A federal judge must still grant final approval for the settlement to become official Back in March 2023, the SEC initiated legal action against Sun and his business entities, claiming they offered unregistered securities via Tronix and BitTorrent tokens. The regulatory body further alleged Sun orchestrated “manipulative wash trading” activities involving TRX and ran a celebrity endorsement campaign that concealed paid promotions. JUST IN: SEC ends case against Tron Founder & crypto billionaire Justin Sun. pic.twitter.com/hb8j85T0eO — Watcher.Guru (@WatcherGuru) March 5, 2026 The case implicated several high-profile figures, including musician Akon, Hollywood actress Lindsay Lohan, and social media personality Jake Paul. According to the SEC, these celebrities received compensation for promoting TRX and BTT tokens without disclosing the financial arrangement to their followers. Throughout the proceedings, Sun maintained his innocence. His defense centered on the argument that the SEC lacked jurisdiction, characterizing the activities as “predominantly foreign conduct” beyond the reach of American securities law. The settlement agreement stipulates that Rainberry Inc. — a Sun-affiliated entity connected to the Tron ecosystem — must remit a $10 million penalty. Additionally, Rainberry faces a permanent injunction against future securities law violations. Charges against Sun in his personal capacity, alongside the Tron Foundation and BitTorrent Foundation, will be dismissed with prejudice. This ...