Justin Sun has agreed to a $10 million settlement with the U.S. Securities and Exchange Commission, closing a civil fraud case that had become one of the more visible enforcement actions in crypto. The settlement still requires approval from a court in Manhattan. Under the agreement, Sun, the Tron Foundation, and the BitTorrent Foundation neither admitted nor denied wrongdoing.
In a post on X, Sun said the SEC had moved to dismiss all claims against him, the Tron Foundation, and the BitTorrent Foundation, adding that the resolution brings closure. The case had focused on allegations tied to market activity and paid promotions, placing Sun and his affiliated entities under sustained regulatory pressure.
SEC case centered on Tronix and BitTorrent tokens
The lawsuit was originally filed in March 2023 and revolved around Tronix and BitTorrent tokens. According to the SEC’s allegations, Sun directed hundreds of thousands of trades between accounts he owned, a pattern the agency said was used to inflate trading volume. A separate part of the complaint claimed he used celebrity endorsements to promote the tokens without disclosing that the endorsements were paid.
The source identifies Lindsay Lohan, Akon, Ne-Yo, and Jake Paul among the celebrities named in the matter. The SEC also alleged that Sun raised $31 million in proceeds through conduct it described as illegal. The case was placed on hold in February 2025 while regulators awaited fresh guidance after President Donald Trump took office.
Settlement lands in the middle of a policy debate
The report frames the settlement as part of a broader reset in U.S. crypto enforcement. It removes a major legal overhang for the Tron founder and his businesses at a time when the Trump administration says it wants the United States to become a center for cryptocurrency innovation.
Political criticism followed quickly. Senator Elizabeth Warren said the SEC should not serve as a “lap dog” for Trump’s billionaire friends. White House spokesperson Taylor Rogers responded that the president has always been motivated by what is best for the American people. The report also notes that Sun’s connection to World Liberty Financial was not addressed by this settlement.
The case is also being read against the backdrop of changes at the SEC after Gary Gensler’s departure. Gensler’s tenure was associated with a tougher stance on crypto assets. Critics, including the financial reform group Better Markets, argue that the outcome exposes inconsistencies in U.S. crypto enforcement. Former SEC employee Amanda Fischer described the dismissal as “outrageous.”