The U.S. Securities and Exchange Commission (SEC) has amended its lawsuit against Tron founder Justin Sun, citing his extensive travel within the United States as a basis for jurisdiction. According to the amended complaint filed in Manhattan federal court on April 17, the SEC claims to have "personal jurisdiction" over Sun, Tron, and two other associated businesses due to their deliberate operations and targeting of the United States.
The SEC alleges that Sun spent over 380 days in the United States between 2017 and 2019, traveling to key business hubs such as New York, Boston, and San Francisco. These trips, the SEC contends, were conducted on behalf of entities like the Tron Foundation, the BitTorrent Foundation, and Rainberry, which are described in the lawsuit as Sun’s "alter ego" companies.
In its amended complaint, the SEC reiterates its previous accusations that Sun and his businesses unlawfully sold unregistered securities through Tron (TRX) and BitTorrent (BTT) tokens, as well as engaged in "manipulative wash trading." The regulator asserts that TRX and BTT were promoted, offered, and sold to both consumers and investors in the United States.
Furthermore, the SEC alleges that Sun frequently traveled to the United States to promote, offer, and sell TRX and BTT tokens. Despite Sun's contention that TRX and BTT tokens were primarily sold overseas and steps were taken to avoid the U.S. market, the SEC maintains that the tokens were indeed offered and sold to individuals located within the United States.
In late March, Sun, a Chinese-born Grenadian citizen, sought to dismiss the lawsuit, arguing that the SEC lacked jurisdiction over him and the Singapore-based Tron Foundation. He maintained that the tokens were exclusively sold abroad and that the SEC failed to demonstrate their original offering or sale to any U.S. residents.
