SEC and Justin Sun Seek 60-Day Delay to Explore Settlement in Ongoing Legal Battle

The U.S. Securities and Exchange Commission (SEC) and Justin Sun are seeking a 60-day delay in their ongoing legal case, as both parties explore the possibility of a settlement.

This request, filed on February 26 in the Southern District of New York, aims to give them time to negotiate and potentially resolve the matter outside of court. The filing suggests that pausing the case would be in the interest of the court and public, allowing resources to be preserved while discussions continue. The court has not yet decided whether to approve the request.

The SEC’s lawsuit, filed in March 2023, accuses Sun and his associated companies — including the Tron Foundation and BitTorrent — of offering unregistered securities through the sale of TRON (TRX) and BitTorrent (BTT) tokens.

It also includes allegations of wash trading, where trades are made to mislead the market by inflating volume. Additionally, the SEC claims Sun paid celebrities like Lindsay Lohan and Soulja Boy to promote these tokens without revealing their compensation.

READ MORE:

Crypto Sentiment at a Low: Is Bitcoin’s Price Poised for a Bounce?

While the case continues to develop, this pause request hints at a potential resolution. Should the court grant the stay, the ruling on Sun’s motion to dismiss would be delayed, and the parties will update the court within two months. The outcome of this case remains uncertain, particularly whether Sun will admit to any violations as part of any potential settlement.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.