SEC Pauses Lawsuit Against Justin Sun Amid Settlement Deliberations

• SEC suspends Justin Sun lawsuit
• Tron Challenges SEC Jurisdiction Over Foreign Businesses
• SEC backs down on lawsuits against big crypto names

The United States Securities and Exchange Commission (SEC) decided temporarily halt its lawsuit against Justin Sun, the influential founder of Tron, one of the leading cryptocurrencies on the market. Recent court documents reveal that both Sun and the SEC have requested that the federal judge consider suspending the lawsuit in order to allow for negotiations for a possible settlement.

“This request for suspension comes by mutual agreement between the parties, reflecting their mutual interest in seeking an amicable resolution. The suspension also benefits the judicial system and the public, as it saves resources and avoids procedural wear and tear in analyzing the Defendants’ motion to dismiss the complaint,” the document states.

U.S. District Court Judge Edgardo Ramos approved the request a day after it was filed. The ruling comes amid a string of charges Sun has faced in 2023, including allegations of fraud, selling unregistered securities, and market manipulation through wash trading, particularly related to the TRX cryptocurrency.

In a previous legal filing, the Tron Foundation challenged the SEC’s authority over its operations, arguing that the U.S. commission has no jurisdiction over trade and investments that occur outside the United States. “The SEC should not act as a global regulator, and its efforts to apply U.S. securities laws to largely international activities are excessive and should be rejected,” Tron’s lawyers argued at the time.

The SEC has also recently backed off on other high-profile cases in the cryptocurrency sector, dropping cases against prominent figures and companies such as MetaMask developer Consensys and major U.S. exchange Coinbase.