Justin Sun Cleared of Personal SEC Claims as Rainberry Settles for $10M

by

The SEC has reached a settlement with Rainberry (formerly Bittorrent) to resolve a 2023 fraud and market manipulation case, marking a significant shift in U.S. crypto enforcement.

Dismissal of Personal Claims Against Justin Sun

Rainberry Inc., a cryptocurrency company previously known as Bittorrent, has agreed to pay a $10 million civil penalty. This is to resolve allegations of market manipulation and offering unregistered securities. The settlement was made public on March 5. Ah yes, good old market manipulation-nothing says ‘responsible business’ like a hefty fine and zero responsibility.

In a dramatic turn, the U.S. Securities and Exchange Commission (SEC) agreed to dismiss all personal claims against Justin Sun, the billionaire founder of Tron and the Tron Foundation. This dismissal comes “with prejudice,” meaning that Sun can now sip his morning coffee knowing that these charges can never resurface. What a relief! I bet that’s one less thing for him to tweet about.

The SEC’s legal battle against Sun and his merry band of cryptocurrency pioneers began back in March 2023. At the time, the regulators accused Sun of orchestrating a devious plot to sell unregistered crypto asset securities. Specifically, they alleged that Sun was responsible for the illicit sale of Tronix (TRX) and Bittorrent (BTT) tokens. On top of that, he was accused of directing employees to carry out over 600,000 “wash trades,” which is basically making things look like they’re active and buzzing when they’re as lively as a brick.

But don’t fret-Rainberry will pay the fine. Of course, there’s no admission or denial of the allegations, because why take responsibility when you can just cut a check and walk away?

Sun Vows Future Cooperation with U.S. Regulators

Justin Sun reacted to the announcement by assuring everyone that he will continue operating in the U.S. (because, of course, where else would you want to be when you’re playing crypto monopoly?) and promised to help the SEC develop a “regulatory framework.” Which is probably a great idea unless you’re trying to scam people with crypto-then, maybe not so much.

“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 world,” Sun wrote on X. Oh yes, I’m sure “accelerating innovation” sounds much more impressive when said with a billion-dollar smile.

The case against Sun is part of a larger retreat by the SEC from its once-aggressive stance on digital asset regulation. Under Trump, the SEC was playing hardball; now, it seems like they’re getting soft on crypto, much to the delight of high-profile figures like Coinbase CEO Brian Armstrong, Uniswap founder Hayden Adams, and Kraken co-founder Jesse Powell. Lucky them!

In the meantime, Rainberry is under a permanent injunction, ensuring that future violations of federal securities laws are, at the very least, prohibited. I suppose they can still engage in all sorts of shenanigans-but now, they just have to be more careful.

The case was temporarily paused in early 2025 due to shifting political winds in Washington, which begs the question: Did this deal happen because of strategy, or was it just a good old-fashioned political backroom deal?

The final judgment is still waiting for approval by U.S. District Judge Edgardo Ramos. Because who doesn’t love a bit of courtroom drama?

FAQ ❓

  • What was Rainberry Inc.’s penalty for market manipulation? Rainberry, once known as Bittorrent, has agreed to pay a $10 million civil penalty to settle allegations of market manipulation and unregistered securities offerings. All for a mere $10 million-pocket change for billionaires.
  • What does the settlement mean for Justin Sun and his foundations? The SEC has dismissed all personal claims against Sun, the Tron Foundation, and the Bittorrent Foundation “with prejudice,” meaning no future charges on the same issues. It’s like getting a free pass on a test you didn’t study for.
  • What were the main allegations against Rainberry and Justin Sun? Federal regulators accused Sun of selling unregistered securities and instructing employees to conduct more than 600,000 wash trades to create the illusion of active trading. The kind of “active trading” you’d expect from a shady used car dealership.
  • What impact does this settlement have on cryptocurrency regulations? The settlement signals a shift towards a more cooperative approach by the SEC, while Rainberry now faces a permanent injunction against future violations. Looks like the SEC is going from ‘hard enforcement’ to ‘let’s be friends’ in the crypto world.

Read More

2026-03-06 16:57