A court filing filed Thursday in the District Court for the Southern District of New York, said that the US Securities and Exchange Commission has agreed to settle its long-running case against Tron founder Justin Sun and companies tied to the TRON ecosystem.
Rainberry will be fined $10 million in penalties under the proposed judgment, according to the suggested judgment. Sun’s remaining allegations and the foundations associated with them would be withdrawn.
Rainberry is the company behind BitTorrent, which became linked to the TRON ecosystem after its 2018 acquisition by Sun.
The agreement must still be approved by the federal court.
It also announced that the commission will submit an independent notice dismissing of DeAndre Cortez Way (professionally called Soulja Boy), ending the case entirely.
Origins of the enforcement action
A lawsuit against Sun and his companies, including Tron Foundation, BitTorrent Foundation and Rainberry, was filed by the SEC in 2023 for allegedly unregistered offers and sales of crypto asset securities TRON ($TRX) and Bit torrent (BTT) respectively.
The regulator also claimed that the Sun arranged wash transactions to deflate $TRX trading activity and earned millions of dollars from illegal token sales.
The case was one of a number of high profile enforcement actions the agency took against leading figures in the digital asset industry at that time.
In February 2025, the SEC paused its lawsuit against Sun, following a joint request from both parties.
Regulatory landscape shifts under new leadership
The settlement arrives amid a notable recalibration of the SEC’s approach to digital asset enforcement.
Under Chairman Paul Atkins, the agency has moved toward pausing certain crypto-related cases in favor of pursuing negotiated resolutions.
Some lawmakers have criticised the pivot, but some lawmakers say it is a “piote” to this point. In public debate, House Democrats have publicly questioned the commission’s decision to suspend enforcement actions including proceedings against Sun and Tron.
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