U.S. District Judge Edgardo Ramos has dismissed all claims from the Securities and Exchange Commission against Justin Sun and his associated foundations. The resolution follows a $10 million settlement where Sun and his companies did not admit wrongdoing. The case, initially filed in 2023, alleged market manipulation and the unregistered sale of crypto securities.
Justin Sun announced recent that the U.S. Securities and Exchange Commission has moved to dismiss all claims against him, the Tron Foundation, and the BitTorrent Foundation. On X he confirmed the news and stated he was “very pleased” with the decision.
The civil fraud case was resolved with a $10 million settlement. According to court documents, Sun and his companies did not admit or deny any wrongdoing.
The lawsuit began in 2023 during a period of aggressive SEC crypto enforcement. Sun was accused of organizing the unregistered sale of crypto securities for TRX and BTT tokens.
The agency also alleged Sun manipulated trading volumes through wash trading schemes. It claimed employees conducted over 600,000 illegal trades to inflate TRX’s secondary market activity.
The SEC further stated Sun generated proceeds of “$31 million from illegal, unregistered offers and sales of the token (TRX)”. The case was paused in 2025 when the SEC requested a stay from the federal court.
Sun later became a major financial supporter of Trump-linked crypto ventures. This included purchasing billions of WLFI tokens to back World Liberty Financial.
The token prices showed a muted immediate reaction to the dismissal news. TRX was up 0.5% on the day, while BTT was down 1%.
Sun expressed his focus on accelerating innovation in the United States moving forward. He referenced the country’s aim to become a global crypto hub under the current administration.
