Court documents reveal that Justin Sun, Tron’s founder, has been sent a summons from the U.S. Securities and Exchange Commission (SEC) regarding the civil complaint filed against him last month. Youtuber Austin Mahone and rapper Soulja Boy, whose real name is DeAndre Cortez Way, have also been summoned. The SEC accuses Sun of orchestrating an unregistered sale and offer of a crypto asset security and engaging in manipulative trading schemes.
A court summons has been issued to Sun, Mahone, and Soulja Boy, giving them 21 days to contact SEC attorney Adam Gottlieb. This summons is related to a recent lawsuit filed against the trio due to the SEC’s civil case alleging that Sun unlawfully offered and sold tron (TRX) and bittorrent token (BTT).
The SEC claims that Sun organized the offer and sale of TRX and BTT while participating in manipulative wash trading of TRX to create a false impression of legitimate investor interest. The securities regulator contends that Sun conducted these schemes through various organizations he controls, including Rainberry, Bittorrent Foundation Ltd., and the Tron Foundation.
Mahone is charged with illegally promoting TRX on his Twitter account to his 9.1 million followers, while Soulja Boy faces similar allegations for promoting TRX to his 5.2 million Twitter followers. If the defendants fail to respond within the specified timeframe, a default judgment will be entered against them for the relief demanded in the complaint.
Although Sun’s exact location is unclear, he recently claimed to be in Hong Kong on Twitter. Gottlieb’s court summons lists Sun’s address as Singapore. Besides Soulja Boy and Mahone, several other celebrities such as Lindsay Lohan, Ne-Yo, Kendra Lust, Jake Paul, and Akon were accused of unlawfully promoting TRX. All have settled with the U.S. regulator except for Soulja Boy and Mahone.
On Twitter, Sun commented on the lawsuit and stated that his team believes the complaint “lacks merit.” He also asserted that the SEC’s regulatory framework for digital assets is still in its infancy and requires further development. Additionally, the Tron founder expressed his willingness to “collaborate with governments and regulatory bodies globally.” If the defendants cannot be served with the summons, the court may need to explore alternative methods of notifying them.
What do you think the outcome of this SEC case will be for Tron founder Justin Sun? Share your thoughts about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament
A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.
Court documents reveal that Justin Sun, Tron’s founder, has been sent a summons from the U.S. Securities and Exchange Commission (SEC) regarding the civil complaint filed against him last month. Youtuber Austin Mahone and rapper Soulja Boy, whose real name is DeAndre Cortez Way, have also been summoned. The SEC accuses Sun of orchestrating an unregistered sale and offer of a crypto asset security and engaging in manipulative trading schemes.
A court summons has been issued to Sun, Mahone, and Soulja Boy, giving them 21 days to contact SEC attorney Adam Gottlieb. This summons is related to a recent lawsuit filed against the trio due to the SEC’s civil case alleging that Sun unlawfully offered and sold tron (TRX) and bittorrent token (BTT).
The SEC claims that Sun organized the offer and sale of TRX and BTT while participating in manipulative wash trading of TRX to create a false impression of legitimate investor interest. The securities regulator contends that Sun conducted these schemes through various organizations he controls, including Rainberry, Bittorrent Foundation Ltd., and the Tron Foundation.
Mahone is charged with illegally promoting TRX on his Twitter account to his 9.1 million followers, while Soulja Boy faces similar allegations for promoting TRX to his 5.2 million Twitter followers. If the defendants fail to respond within the specified timeframe, a default judgment will be entered against them for the relief demanded in the complaint.
Although Sun’s exact location is unclear, he recently claimed to be in Hong Kong on Twitter. Gottlieb’s court summons lists Sun’s address as Singapore. Besides Soulja Boy and Mahone, several other celebrities such as Lindsay Lohan, Ne-Yo, Kendra Lust, Jake Paul, and Akon were accused of unlawfully promoting TRX. All have settled with the U.S. regulator except for Soulja Boy and Mahone.
On Twitter, Sun commented on the lawsuit and stated that his team believes the complaint “lacks merit.” He also asserted that the SEC’s regulatory framework for digital assets is still in its infancy and requires further development. Additionally, the Tron founder expressed his willingness to “collaborate with governments and regulatory bodies globally.” If the defendants cannot be served with the summons, the court may need to explore alternative methods of notifying them.
What do you think the outcome of this SEC case will be for Tron founder Justin Sun? Share your thoughts about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament
A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.
Singapore-based crypto exchange Bitrue has lost millions of U.S. dollars’ worth of ether and other coins in a hack. The trading platform suspended withdrawals until early next week to conduct additional security checks and promised to compensate the affected users.
Cryptocurrency exchange Bitrue announced Friday on Twitter it has identified a “brief exploit” in one of its hot wallets. The breach led to the theft of around $23 million in a number of cryptocurrencies, including ether (ETH) and shiba inu (SHIB).
1/4: We have identified a brief exploit in one of our hot wallets on 07:18 (UTC), 14 April 2023. We were able to address this matter quickly and prevented the further exploit of funds. We take this matter seriously and are currently investigating the situation. pic.twitter.com/QioPHSB2DM
— Bitrue (@BitrueOfficial) April 14, 2023
The platform’s team said it was able to prevent further transfers of funds and assured the matter is being investigated. “The affected hot wallet only holds less than 5% of our overall funds. The rest of our wallets remain secure and have not been compromised,” Bitrue pointed out.
In a follow-up tweet, the exchange informed customers it has temporarily suspended withdrawals, which will be restored on Tuesday, April 18. “All identified users who are affected by this incident will be compensated in full,” Bitrue promised.
“We are committed to maintaining transparency throughout this process, and thank you for your continued support,” the Singapore-headquartered company added, assuring it’s taking the hacking attack seriously.
The Bitrue hack is the second major case of this kind since the start of the month. South Korean crypto exchange GDAC announced the loss of more than $13 million when hackers took control of some of its hot wallets on April 9. And in March, over $1.5 million in bitcoin were stolen from crypto ATM manufacturer General Bytes.
This is not the first time Bitrue has suffered a security breach. In July 2019, the exchange lost around $4.7 million in XRP and ADA. At the time, the perpetrators exploited a vulnerability that allowed them to compromise the accounts of dozens of users.
What are your thoughts on the hacking incident? Share them in the comments section below.
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days
Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.
Source From : News