Key Highlights
The SEC filed a proposed resolution that would dismiss its remaining claims against Justin Sun, Tron Foundation Limited, and BitTorrent Foundation Ltd., pending court approval.
BitTorrent developer Rainberry Inc. agreed to pay a $10 million civil penalty and accept injunctive relief tied to the SEC’s March 2023 case, without admitting or denying the allegations.
The case was paused in February 2025 after the SEC and the defendants asked the court for time to explore a potential resolution.
The U.S. Securities and Exchange Commission (SEC) has moved to resolve its civil case against Tron founder Justin Sun and affiliated entities, under a proposed settlement that would dismiss the agency’s remaining claims against Sun, Tron Foundation Limited, and BitTorrent Foundation Ltd. The resolution requires approval by the federal court in Manhattan.
Under the proposed final judgment, Rainberry Inc. – the BitTorrent developer and a defendant in the original matter – would pay a $10 million civil penalty and agree to injunctive relief. The SEC said the defendants neither admitted nor denied the allegations in the resolution.
The case dates back to March 2023, when the SEC sued Sun and the related entities, alleging they conducted the unregistered offer and sale of crypto-asset securities tied to Tronix (TRX) and BitTorrent (BTT). The SEC also alleged manipulative trading designed to create a misleading appearance of market activity, including wash trading, and alleged failures to properly disclose paid promotional activity.
In February 2025, the SEC and the defendants asked the court to pause the case while they explored a potential resolution, a stay that set up the negotiations now reflected in the proposed dismissal and judgment.
If approved, the settlement would end the active civil litigation against Sun and the two foundations while placing the monetary penalty and injunction terms on Rainberry.
