Following Justin Sun’s attempt last month to have the lawsuit dismissed on the grounds that the regulator lacked jurisdiction, the SEC filed an updated lawsuit against Sun.
The US Securities and Exchange Commission has restructured its case against Justin Sun, the founder of Tron, alleging that he has “travelled extensively” throughout the nation, granting the commission authority.
In a revised case filed on April 17 to a Manhattan federal court, the regulator claims it has “personal jurisdiction” over Sun, Tron, and two other companies under his control since they “purposefully took actions in and directed towards the United States.”
The SEC said that Sun travelled to New York City, Boston, and San Francisco on business for a total of more than 380 days in the United States between 2017 and 2019.
The Tron Foundation, the BitTorrent Foundation, and Rainberry—all identified in the lawsuit as Sun’s “alter ego” businesses—were alleged to have sponsored the visits.
The SEC restated claims from its initial action from last month, claiming that Sun participated in “manipulative wash trading” and that he and his companies traded unregistered securities using the Tron and BitTorrent (BTT) tokens.
The SEC was careful to point out that sales, offers, and promotions of TRX and BTT were made to “investors and consumers located in the United States.”
“Sun made numerous trips to the United States during the period that TRX and BTT were advertised, provided, and sold,” the statement continued.
It further stated that Bittrex, a cryptocurrency exchange situated in Seattle, was the venue for Sun’s purported TRX wash trades.
Justin Sun ‘travelled extensively’ to the United States, as the SEC claimed, which sparked legal action. The SEC filed an amended lawsuit against Justin Sun last month in response to Sun’s attempt to have the case dismissed on the grounds that the regulator lacked jurisdiction.