SEC, Justin Sun Seek Settlement in Crypto Lawsuit

The US Securities and Exchange Commission (SEC) and crypto entrepreneur Justin Sun have jointly requested a pause in their ongoing legal battle, as they explore a potential settlement. According to a court filing submitted on Feb. 26, both parties have asked Judge Edgardo Ramos to stay the case for at least 60 days.

The SEC filed its lawsuit against Sun in March 2023, accusing the founder of Tron and his affiliated companies of engaging in the unregistered offering and sale of securities through the distribution of TRON (TRX) and BitTorrent (BTT) tokens. The agency also alleged that Sun engaged in wash trading and paid celebrities to promote TRX and BTT without disclosing the compensation.

The request to stay the case comes as the court was considering Sun’s motion to dismiss the lawsuit. If Judge Ramos grants the stay, the court would delay any ruling on that motion while discussions continue. Both the SEC and Sun’s attorneys emphasized that the delay would harm no party and that court-imposed deadlines would not be affected.

A stay in the case could signal that both sides see room for negotiation, as settlements have been a common resolution in similar SEC enforcement actions against crypto firms and executives. However, no agreement has been finalized, and it remains unclear whether Sun would admit to any wrongdoing as part of a potential resolution.