Justin Sun’s $10M Settlement Closes SEC Case Amid Trump-Linked Investment Scrutiny

The U.S. Securities and Exchange Commission has ended its
lawsuit against crypto entrepreneur Justin Sun after reaching a $10 million
settlement with one of his companies, closing a legal dispute that began three
years ago. The settlement follows a series of SEC actions that were dropped or
settled in recent months, including cases involving Kraken and Coinbase.

The resolution comes as part of a broader shift in U.S.
crypto policy. The Commodity Futures Trading Commission is finalising approval
for crypto perpetual futures and coordinating with the SEC on
rules for other digital assets. At the same time, the CFTC has cut nearly
all enforcement staff in its Chicago office, raising questions about the
regulator’s capacity to pursue complex cases.

SEC Alleges TRX, BTT Violations

In a letter filed yesterday (Thursday) in federal court in
Manhattan, the SEC said Rainberry, a Sun-linked company, agreed to pay the fine
and that it would drop claims against Sun, the Tron Foundation, and the
BitTorrent Foundation. Sun and the companies did not admit or deny the
allegations.

The SEC first brought the case in March 2023. It accused Sun
and related companies of selling unregistered crypto assets, including TRX and
BTT tokens linked to the Tron ecosystem.

The regulator also alleged Sun
directed “manipulative wash trading” of TRX and ran promotional campaigns using
celebrities. Several public figures, including Akon, Lindsay Lohan, and
YouTuber Jake Paul, promoted the tokens “without disclosing their
compensation.” Sun disputed the accusations, arguing the SEC was applying U.S.
law to “predominantly foreign conduct.”

JUST IN: 🇺🇸 SEC ends case against Tron Founder & crypto billionaire Justin Sun. pic.twitter.com/hb8j85T0eO

— Watcher.Guru (@WatcherGuru) March 5, 2026

Sun Invests $75M in Trump-Linked Crypto

Sun’s ties to a Trump-linked crypto venture have drawn
additional scrutiny. In November 2024, he became the largest investor in World
Liberty Financial, a Trump family project, initially buying $30 million in
tokens and later increasing the investment to $75 million.

Lawmakers previously
warned that failing to pursue the case could “undermine investors’ confidence”
and raised concerns about a potential “pay-to-play scheme.”

After the settlement, Sun posted on X that “today’s
resolution brings closure” and said he looked forward to “working with the SEC
to develop guidance and regulations for crypto going forward.”

This article was written by Tareq Sikder at www.financemagnates.com.

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