"Sun's SEC Case Temporarily Halted for Potential Resolution"

Crypto billionaire Justin Sun has received a temporary reprieve from the U.S. Securities and Exchange Commission (SEC) in its civil case against him. Sun, the founder of Tron (TRX), and the SEC jointly requested a stay in the case to explore a potential resolution, according to recent court filings.

The request stated that both parties believed it was in their interest to pause the case while they considered a potential resolution, and that no party or non-party would be prejudiced by a stay. The stay is also in the best interest of the court and the public, as it would conserve judicial resources by potentially avoiding the need for the court to resolve the defendants' pending motion to dismiss the complaint.

United States District Judge Edgardo Ramos granted the application, allowing Sun and the SEC to explore a potential resolution to the case. In 2023, Sun and his crypto firms were accused of fraud, selling unregistered securities, and manipulating the price of TRX via wash trading.

Last April, the Tron Foundation filed a motion to dismiss the case, arguing that the SEC does not have jurisdiction to regulate foreign trades and investments. The motion stated that the SEC is not a worldwide regulator and that its efforts to extend U.S. securities laws to cover predominantly foreign conduct go too far.

The SEC has recently dropped other high-profile cases against crypto firms, including MetaMask developer Consensys and the top U.S.-based crypto exchange Coinbase. This development suggests that the SEC may be open to negotiating settlements in some cases, rather than pursuing them to trial.