NEWSLETTER
Court documents reveal that Justin Sun, the founder of Tron, received a subpoena from the US Securities and Exchange Commission (SEC) regarding the civil lawsuit filed against him last month. The youtuber Austin Mahone and the rapper Soulja Boy, whose real name is DeAndre Cortez Way, have also been summoned. The SEC accuses Sun of orchestrating an unregistered sale and offer of a crypto asset security and engaging in manipulative trading schemes.
Court issues subpoena to Singapore address in bid to serve Tron founder Justin Sun
TO court summons has been issued to Sun, Mahone and Soulja Boy, giving them 21 days to contact SEC counsel Adam Gottlieb. This subpoena is related to a recent lawsuit filed against the trio due to the SEC civil case alleging that Sun illegally offered and sold tron (TRX) and bittorrent token (BTT).
The SEC claims that Sun arranged the offering and sale of TRX and BTT while engaging in the manipulative laundering trade of TRX to create a false impression of legitimate investor interest. The securities regulator maintains that Sun conducted these schemes through various organizations it controls, including Rainberry, the Bittorrent Foundation Ltd. and the Tron Foundation.
Mahone is accused of illegally promoting TRX on his Twitter account to his 9.1 million followers, while Soulja Boy faces similar accusations for promoting TRX to his 5.2 million followers on Twitter. If the defendants do not respond within the established period, a default judgment will be issued against them for the reparation demanded in the lawsuit.
Although Sun’s exact location is unclear, recently reclaimed be in Hong Kong on Twitter. Gottlieb’s court summons lists Sun’s address as Singapore. In addition to Soulja Boy and Mahone, several other celebrities including Lindsay Lohan, Ne-Yo, Kendra Lust, Jake Paul, and Akon were accused of illegally promoting TRX. All have reached an agreement with the US regulator except for Soulja Boy and Mahone.
On Twitter, Sun commented about the lawsuit, saying his team believes the complaint is “without merit.” He also stated that the SEC’s regulatory framework for digital assets is still in its infancy and requires further development. In addition, the founder of Tron expressed his willingness to “collaborate with governments and regulatory bodies globally.” If the summons cannot be served on the defendants, the court may need to explore alternative methods of serving them.
What do you think the outcome of this SEC case will be for Tron founder Justin Sun? Share your thoughts on this topic in the comments section below.
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