The SEC closed the case of Justin Sun for $10 million. Three years of legal war – and not a single admission of guilt

“Today marks the end. But I never stopped. I will continue to build.” — Justin Sun, X, March 5, 2026

One of the most high-profile cases in the history of crypto regulation ended with a quiet settlement agreement. The US Securities and Exchange Commission (SEC) and the Tron Foundation have settled a three-year legal dispute: Rainberry Inc. — the operating entity behind BitTorrent, integrated into the Tron ecosystem — agreed to pay a $10 million civil fine. In response, the SEC withdraws all claims against Justin Sun, the Tron Foundation and the BitTorrent Foundation with prejudice – that is, without the right to re-examine the same charges.

What was Justin charged with?

The SEC filed the lawsuit in March 2023 under Chairman Gary Gensler. The regulator accused Sun of selling unregistered securities – TRX and BTT tokens – as well as organizing a large-scale wash trading scheme: employees allegedly moved tokens between controlled accounts, creating the appearance of real trading volume. According to the SEC, the scheme generated approximately $31 million in illegal profits. In parallel, the regulator accused Sun of hidden payments for advertising from celebrities, including Lindsay Lohan and Jake Paul, six of whom settled claims back in 2024, collectively paying about $400,000.

Why now and why this way

With the advent of the Trump administration, the SEC abruptly changed course. The regulator, which under Gensler became famous for “regulating by persecution,” is systematically closing cases against major industry players – Coinbase, Ripple, and now Tron. Rainberry agreed to a “neither admit nor deny” fine, a standard SEC practice in which a company pays to close a matter without admitting wrongdoing.

The political context adds spice. After Trump’s victory, Sun purchased $30 million worth of tokens from World Liberty Financial, a project associated with the president’s family. A number of Democrats in Congress have already publicly doubted that the decision to settle was purely legal.

Key facts
▸ Fine: Rainberry Inc. pays $10 million civil fine
▸ Result: all lawsuits against San, Tron Foundation, BitTorrent Foundation – closed with prejudice
▸ Case opened: March 2023, under SEC Chairman Gary Gensler
▸ Accusations: unregistered securities (TRX, BTT) + wash trading + hidden advertising from celebrities
▸ TRX is trading at $0.285 – the market has not yet revalued the asset after the legal cover was lifted
▸ The agreement still requires approval from a federal judge

What does this mean for the market

The lifting of the three-year legal cover over TRX and BTT is a structurally positive signal. Many exchanges have avoided listing TRX precisely because of the risk of being associated with an “unregistered security.” Now this risk has formally disappeared. We are monitoring the reaction of Binance.US, Kraken and other American platforms – a possible restart of listings could become a price catalyst for TRX.

⚠️ The material is for informational purposes only and is not an investment recommendation.