- The US SEC tried to get Justin Sun’s appeal to dismiss the securities violation case hindered.
- A federal judge sided with Sun, denying the SEC’s request.
As an analyst with over two decades of experience in the financial industry, I have witnessed countless legal battles between regulatory bodies and innovative tech companies. The recent development in the US SEC vs Justin Sun case is a fascinating turn of events that underscores the complexity of navigating the intersection of technology and finance, particularly when it comes to initial coin offerings (ICOs).
Federal Judge Edgardo Ramos of the US District Court for the Southern District of New York has denied the US Securities and Exchange Commission’s (SEC) attempt to thwart Justin Sun’s appeal to have the securities violation case against him dismissed. The SEC claimed the Tron founder and his lawyers introduced an argument that broke the norm of legal proceedings.
Last year in March, a lawsuit was filed against the founder, the Tron Foundation, Rainberry Inc, and the BitTorrent Foundation, alleging that they had been selling unregistered securities, engaging in market manipulation, and other offenses. Sun and his legal team have been actively trying to have this case dropped, asserting that Tron was selling tokens to foreign investors outside the jurisdiction of the U.S. Securities and Exchange Commission (SEC).
The regulatory body argues that Sun presented his defense about TRX (Tron) and BTT (BitTorrent) tokens not being subject to the “common enterprise” aspect of the Howey Test too late in the trial, making it potentially inadmissible. In a letter to the judge, they recommended that Sun should instead present this argument through an additional response rather than introducing it for the first time at this stage.
Sun’s Legal Team Clapped Back
Apart from that letter, there were more correspondence about the issue. Sun’s legal team responded with another letter, contending that the SEC is attempting to fabricate a dispute. They argued that Sun never disputed the “common enterprise” component of the Howey Test and instead, their focus was on challenging the “expectation of profit” aspect. The lawyers stated that this argument was presented within the acceptable time frame, and subsequently, their request to dismiss the case is based on this very point.
Judge Ramos sided with Sun, dismissing the SEC’s attempts to bury their argument to have the case thrown out of court or file a sur-reply. He said, “In light of defendants’ concession that they (are) not challenging the “common enterprise” element of the Howey test, the SEC’s letter motion to strike the untimely argument or for leave to file a sur-reply is DENIED.”
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2024-08-20 21:48