The U.S. Securities and Exchange Commission (SEC) has agreed to a proposed settlement in its ongoing legal battle with Justin Sun, the founder of the cryptocurrency project TRON (TRX), in a court filing submitted, in the United States District Court for the Southern District of New York
The filing outlines a settlement agreement that, if approved by the federal court, could bring an end to the case. Under the proposed judgment, Rainberry, a part of the TRON ecosystem, would pay a penalty of $10 million, while the SEC would dismiss its remaining claims against Sun and the project-related entities.
Rainberry, best known for its ownership of the popular file-sharing platform BitTorrent, joined the TRON ecosystem when it was acquired by Sun in 2018, resulting in the creation of the BTT token.
This agreement is not final, however, as the settlement must still be approved by a federal court to take effect.
SEC Moves Toward Justin Sun Settlement
It will file a separate notice dismissing its claims against Soulja Boy, who had been named in the case earlier. If approved, this will close the enforcement action related to the TRON investigation.
The legal fight began in 2023, when the SEC filed charges against Sun and various companies associated with the TRON network. This includes the Tron Foundation, the BitTorrent Foundation, and Rainberry.
The regulators claimed Sun and his firms made unregistered offers and sales of crypto asset securities, including TRON (TRX) and BitTorrent (BTT) coins.
The SEC also accused Sun of facilitating wash trades meant to boost the trading volume of TRX coins. The regulators claimed Sun’s actions generated millions of dollars in token sales, all of which violated US securities law.
At that moment, the case was part of a series of high-profile enforcement actions that the regulator had taken against prominent personalities in the cryptocurrency industry.
In February 2025, the US regulator halted the lawsuit against Sun, as both parties sought more time, indicating continued settlement discussions.
The recently filed proposal is the product of the settlement discussions and could bring the lawsuit to an end if the terms are approved by the court.
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SEC Reassesses Strategy In Crypto Cases
The settlement occurs at a time when the SEC is reassessing its approach to ongoing crypto cases. Led by Paul Atkins, the US regulator is reassessing ongoing cases involving crypto assets. It is now favoring settlements over litigation.
This has caused debate in Washington, with House Democrats expressing doubt regarding the halt or resolution of some actions, including the Sun case and the TRON ecosystem.
Despite the criticism, the proposed settlement suggests that regulators and crypto companies are open to settling disputes in a short time frame. If the case is approved by the court, the 2023 case will come to an end.
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