The price of TRON pushed higher even as much of the crypto market traded lower. The move followed reports that the U.S. Securities and Exchange Commission intends to dismiss its legal case against Justin Sun, the founder of the TRON ecosystem.
According to the proposed resolution, one of Sun’s affiliated companies will pay a $10 million civil penalty as part of a settlement related to earlier digital asset investigations launched during the Joe Biden administration.
After the news surfaced, TRON quickly recovered from earlier losses and climbed to around $0.2858, even while Bitcoin was trading roughly 3% lower.
The SEC originally filed the lawsuit in March 2023 against Sun and several organizations tied to the TRON ecosystem, including the Tron Foundation, BitTorrent Foundation, and Rainberry. Regulators accused them of improperly distributing tokens such as Tronix and BitTorrent.
Authorities also claimed Sun generated about $31 million through a scheme in which employees allegedly conducted large volumes of token trades between accounts he controlled, creating the appearance of legitimate market activity.
Despite the accusations, Sun and the related companies have not admitted wrongdoing. If approved by a judge, the settlement would close the case and require Rainberry to pay the agreed $10 million penalty.
The development quickly drew political reactions in Washington. Senator Elizabeth Warren criticized the decision and linked it to Sun’s connections to Donald Trump.
“Last month, SEC Chair Atkins denied in front of Congress that the Trump Administration is giving a free pass to crypto billionaires with ties to Donald Trump. Justin Sun poured $90 million into Trump’s crypto ventures, and today the SEC agreed to drop its case against him,”
she said.
Warren also voiced concerns that upcoming crypto legislation could create opportunities for political favoritism in the industry.
Meanwhile, Sun has recently reappeared more frequently in the U.S. and has maintained close ties to projects connected to Trump’s crypto initiatives, including purchases of tokens associated with the president’s ventures.
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