- The SEC has moved to dismiss its lawsuit against TRON founder Justin Sun after nearly three years of legal proceedings.
- A TRON-linked company, Rainberry Inc., will pay a $10 million civil penalty as part of the settlement.
The legal battle between the SEC and TRON founder Justin Sun has officially come to an end. After nearly three years of litigation, regulators have moved to dismiss the lawsuit tied to token sales and market activity involving the TRON ecosystem.
We are pleased to announce that the SEC has moved to dismiss all claims against Tron Foundation.
Today’s SEC is making meaningful progress toward a pro-innovation environment in the United States.
TRON DAO will continue building and strengthening the TRON network to expand…
— TRON DAO (@trondao) March 5, 2026
The case, which focused on the sale and promotion of the TRX and BTT tokens, concluded with a settlement that includes a $10 million civil penalty paid by a TRON-affiliated company.
SEC Drops Claims Against Justin Sun and TRON Entities
The SEC initially filed its complaint in 2023 against Justin Sun, the TRON Foundation, and the BitTorrent Foundation. Regulators alleged that the organizations conducted unregistered securities offerings through the sale of the TRX and BTT tokens.
Another major allegation involved trading activity linked to TRX. According to the SEC, TRON entities carried out more than 600,000 wash trades, which were believed to artificially increase trading activity in the market.
The regulator also raised concerns about promotional campaigns involving several celebrities. These individuals were allegedly paid to promote TRX and BTT tokens on social media platforms without properly disclosing that the promotions were sponsored.
However, in the latest development, the SEC requested that the court dismiss the claims against Justin Sun personally. Importantly, the dismissal comes without any admission of wrongdoing from Sun or the entities involved.
$10 Million Settlement Brings Case to a Close
As part of the resolution, Rainberry Inc., a company associated with TRON operations, will pay a $10 million civil penalty. This payment effectively settles the enforcement action and ends the case that has remained active for several years.
The settlement closes one of the most closely watched legal disputes involving the TRON ecosystem. While the SEC had previously taken a strict stance on token sales and promotional practices, the outcome of this case signals a more measured conclusion.
Observers have also noted that the penalty amount appears relatively small compared with TRON’s current size. Market data places TRON’s market capitalization at around $25 billion, raising questions among analysts about the scale of the fine.
Justin Sun Says TRON Will Focus on Global Innovation
Justin Sun acknowledged the development in a post on X, confirming that the SEC had moved to dismiss the claims. He stated that the resolution allows him and the broader TRON ecosystem to move forward without ongoing legal pressure.
I am very pleased to confirm that the SEC has moved to dismiss all claims against me, Tron Foundation, and BitTorrent Foundation.
Today’s resolution brings closure, but I never stopped building. I will continue to focus on accelerating innovation in the United States and around…
— H.E. Justin Sun 👨🚀 🌞 (@justinsuntron) March 5, 2026
Sun emphasized that his attention will now shift back to expanding blockchain innovation and strengthening the global crypto industry.
The outcome has also been interpreted by some commentators as part of a broader shift in the SEC’s crypto enforcement approach, as several cases across the sector have recently been paused or settled.
For TRON and its founder, the agreement marks the end of a major regulatory chapter and clears the path for the network to continue building within the digital asset industry.
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