SEC Reaches Settlement with TRON Founder Justin Sun, Companies
On Thursday, March 5, 2026, Crypto Briefing reported that the U.S. Securities and Exchange Commission (SEC) reached a settlement agreement with TRON founder Justin Sun and entities associated with the TRON network. The agreement, detailed in a court filing submitted to the District Court for the Southern District of New York, awaits federal court approval.
According to the proposed judgment, Rainberry, the company operating BitTorrent since its acquisition by Sun in 2018, will pay a $10 million penalty. The settlement stipulates that all remaining claims against Sun and affiliated foundations will be dismissed.
The SEC also indicated it would file a separate notice dismissing claims against DeAndre Cortez Way, known as rapper Soulja Boy, effectively concluding the case in its entirety.
The SEC’s initial enforcement action against Sun and his companies, including Tron Foundation, BitTorrent Foundation, and Rainberry, dates back to 2023. The charges included allegations of unregistered offers and sales of crypto asset securities TRON (TRX) and BitTorrent (BTT). The regulator further accused Sun of orchestrating wash trades to artificially inflate TRX trading volumes and profiting from illicit token sales. The case was among several high-profile enforcement actions taken against key figures in the digital asset sector.
In February 2025, the SEC temporarily suspended its lawsuit against Sun following a joint request from both parties involved.
This settlement occurs during a period of adjustment in the SEC’s regulatory strategy concerning digital assets. Under Chairman Paul Atkins, the agency has shifted toward pausing certain crypto-related cases to pursue negotiated settlements, a move that has faced scrutiny from some House Democrats.
Source: Crypto Briefing
