The US Securities and Exchange Commission said it will end its lawsuit against crypto billionaire Justin Sun. A firm affiliated with him, Rainberry Inc., agreed to pay a $10 million civil penalty under a settlement that still needs a judge’s approval. The SEC said it would drop all claims against Sun under the plan.
I am very pleased to confirm that the SEC has moved to dismiss all claims against me, Tron Foundation, and BitTorrent Foundation.
— H.E. Justin Sun 👨🚀 🌞 (@justinsuntron) March 5, 2026
Today’s resolution brings closure, but I never stopped building. I will continue to focus on accelerating innovation in the United States and around…
The SEC sued Sun in 2023 and alleged securities fraud tied to unregistered token sales through entities it said he owned and controlled. Those included the Tron Foundation, BitTorrent Foundation Ltd., and Rainberry. The regulator also alleged Sun directed employees to execute more than 600,000 “wash trades” in Tronix (TRX) to inflate volume.
The dismissal fits a broader retreat in US crypto enforcement since President Donald Trump returned to the White House. The SEC has dismissed or paused at least a dozen cases, including high-profile lawsuits against Coinbase Global Inc. and Binance Holdings Ltd. The reversal aligns with Trump’s pledge to make the US the “crypto capital” of the world.
Sun’s case has carried extra political sensitivity. His profile rose after purchasing large amounts of Trump-linked crypto products, including the president’s memecoin, and he returned to the US after the purchase earned him an invitation to a dinner where Trump appeared. Democrats on the House Financial Services Committee have warned that dropping enforcement actions can create the appearance of pay-to-play politics.
The SEC described the proposal as “fair and reasonable,” according to a letter from an agency lawyer. Rainberry agreed to the terms without admitting to or denying the allegations. Sun said he was “very pleased” the SEC moved to dismiss the claims, adding in a post on X: “Today’s resolution brings closure, but I never stopped building.”
The immediate catalyst is the court’s decision on whether to approve the settlement. A broader question follows from the agency’s new posture: will lawmakers press for clearer guardrails if marquee cases keep getting dropped? Market participants will watch for the next wave of SEC dismissals, and whether Congress moves to harden statutory standards that outlast changes in administration.
