SEC files lawsuit against ‘Way Too Much’ founder Justin Sun Tron

The U.S. Securities and Exchange Commission (SEC) has amended its Tron lawsuit against Justin Sun and his crypto companies Tron Foundation, BitTorrent Foundation, and Rainberry, after attempting to dismiss the cases late last month.

Tron case changed after Justin Sun’s eviction attempt

In updated court filings, the SEC says Tron’s founder has “traveled extensively” in the United States as part of his “work on behalf of the Tron Foundation, the BitTorrent Foundation, and/or Rainberry.” ”

The first lawsuit alleges that Sun and the aforementioned crypto entities violated federal law by issuing and selling illegal documents in the form of Tronix (TRX) and BitTorrent (BTT).

Following his dismissal in March, Sun essentially argued that the federal agency had overstepped its authority by trying to prosecute him for alleged undue privilege.

On March 28, Sun’s lawyers wrote: “The SEC does not control the world.” He continued: “Attempts to exploit America’s relationship with the United States, to expand U.S. securities laws to mimic the behavior of foreign-dominated nations, are outrageous and must be rejected. ”

Alongside Sun, several well-known celebrities including Lindsay Lohan, Jake Paul and Austin Mahone were also accused of ‘illegally listing TRX and/or BTT without disclosing that they had received payment’. ”

SEC Continue Crypto Crash

The SEC’s reversal of Tron’s decision comes amid growing criticism of its regulatory-compliance approach to the crypto industry.

Critics argue that the SEC has failed to create an effective regulatory framework and has chosen to prosecute large industry players.

Sun’s March motion to dismiss not only limits the SEC’s jurisdiction, but also states that neither TRX nor BTT qualify as investment contracts or securities.

The SEC, led by Gary Gensler, filed lawsuits against major companies such as Coinbase, Ripple and Binance for alleged violations of securities laws.

Coinbase recently attempted to withdraw its lawsuit from the SEC, saying its allegations of illegal securities sales exceeded the agency’s jurisdiction.

However, U.S. District Court Judge Katherine Polk Failla ruled that the SEC should allow the case to proceed.

Despite the setback, the committee shows no signs of slowing down. In a recent X-paper, Gensler outlined the SEC’s ongoing plan, which includes additional rules governing the nature of securities and other cybersecurity rules.