The SEC agreed to drop its long-running securities lawsuit against Justin Sun and Tron after a $10 million settlement tied to the promotion and trading of TRX and BTT tokens.
Posted March 6, 2026 at 7:16 am EST.
The U.S. Securities and Exchange Commission has reached a settlement in its lawsuit against Tron founder Justin Sun, bringing an end to a case that began in 2023. Under the agreement, Rainberry Inc., the company behind the BitTorrent protocol and the BTT token, will pay a $10 million civil penalty and agree not to violate securities laws in the future.
In exchange, the SEC will dismiss all claims against Sun, the Tron Foundation, and the BitTorrent Foundation. The dismissal is with prejudice, meaning the regulator cannot bring the same allegations again. The proposed settlement still requires approval from a federal judge.
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The original lawsuit accused Sun and his affiliated companies of selling unregistered securities through TRX and BTT tokens, as well as manipulating the price of TRX through wash trading and paying celebrities to promote the tokens without proper disclosure.
The resolution arrives as the SEC has scaled back several crypto enforcement actions over the past year. Sun said the outcome brings closure and that he plans to continue building while working with regulators on clearer rules for the industry.
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