The Justin Sun SEC case ended after Rainberry agreed to pay $10 million to the US Securities and Exchange Commission. The regulator then moved to dismiss claims against Justin Sun, the Tron Foundation, and the BitTorrent Foundation. The case began in March 2023.
The SEC said the defendants did not admit or deny the allegations. The SEC crypto lawsuit accused Sun and related entities of selling TRX and BTT as unregistered securities. It also accused them of wash trading involving TRX.
The case later drew attention in Washington because of Sun’s investment in World Liberty Financial, a crypto project linked to the Trump family.
Justin Sun SEC case centered on TRX and BTT
The SEC sued Justin Sun, Rainberry, the Tron Foundation, and the BitTorrent Foundation in March 2023. It said they sold TRX and BTT in violation of US securities law.
The regulator also alleged wash trading in TRX. According to the complaint, the trading activity created a false picture of demand.
In addition, the SEC said celebrities promoted TRX and BTT without disclosing payment. The names listed included Akon, Lindsay Lohan, and Jake Paul.
Sun denied the allegations. He argued the SEC was applying US law to what he called “predominantly foreign conduct.”
Under the Rainberry settlement, the company will pay $10 million. In return, the SEC will drop the remaining claims in the Justin Sun SEC case.
Rainberry settlement closes SEC crypto lawsuit after three years
The Rainberry settlement ends the case without a court ruling on the allegations. The SEC’s filing said the defendants did not admit or deny wrongdoing.
After the filing, Sun posted on X that “today’s resolution brings closure.” He also said he looked forward to “working with the SEC to develop guidance and regulations for crypto going forward.”
The settlement follows broader changes in crypto enforcement. Under the Trump administration, the SEC has dropped or settled several cases that began under former chair Gary Gensler, including actions involving Kraken and Coinbase.
Justin Sun settlement drew scrutiny over Trump-linked crypto investment
In November 2024, Sun bought $30 million worth of tokens tied to World Liberty Financial. In January 2025, he increased that investment to $75 million.
In February 2025, Sun and the SEC asked the court to pause the case for settlement talks. That pause led to the current Justin Sun settlement.
Last month, House Democrats Maxine Waters, Brad Sherman, and Sean Casten said leaving the case unresolved could “undermine investors’ confidence” in the SEC. They also raised concerns about a possible “pay-to-play scheme.”
With the $10 million payment from Rainberry, the SEC crypto lawsuit against Justin Sun is now closed.
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Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: March 6, 2026 • 🕓 Last updated: March 6, 2026
