Tron Founder Justin Sun, Soulja Boy, and Austin Mahone Summoned by SEC in Crypto Asset Case
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. Court Sends Summons to Singapore Address in Attempt to Serve Tron Founder Justin Sun
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. Tags in this story Adam Gottlieb, Akon, alternative service, attorney, Austin Mahone, Bittorrent Foundation Ltd., bittorrent token, Celebrities, civil complaint, Complaint, court summons, Crypto asset, Default, followers, investor interest, Jake Paul, judgment, justin sun, Kendra Lust, Lawsuit, legal proceedings, Lindsay Lohan, manipulative trading, Ne-Yo, Rainberry, regulator, Relief, SEC, Security, Soulja Boy, Summons, Touting, tron, Tron Foundation, trx, Twitter, unlawfully, wash trading
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
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. French President Emmanuel Macron on Taiwan: "Being an Ally Does Not Mean Being a Vassal" NEWS | 29 mins ago Solana"s Crypto and Web3 Smartphone ‘Saga’ Available to the General Public on May 8 NEWS | 2 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleCrypto Exchange Bitrue Suffers $23 Million Hack Next articleC6 Bank’s Climate Tool to Track CO2 Emissions From Customer Transactions Prompts Debate on Future of Banking 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. Read disclaimerShow comments More Popular NewsIn Case You Missed ItBitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals
A bitcoin ATM operator has been indicted in New York for running an illegal business "marketed towards individuals engaged in criminal activity." The district attorney in charge described: "Robert Taylor allegedly went to great lengths to keep his bitcoin kiosk ... read more.Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design