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Date: 2025-02-26 23:03:29
On Wednesday, a joint motion was submitted by the U.S. Securities and Exchange Commission (SEC), the Tron Foundation, and Justin Sun, requesting a federal judge to temporarily halt the ongoing securities case against the crypto entrepreneur and his company.
The motion bears resemblance to those filed in the SEC's continuing cases against Coinbase and Binance. In both instances, the parties stated they were working towards a "potential resolution" of their disputes. Coinbase CEO Brian Armstrong recently announced that the SEC had agreed to drop its case against the exchange, subject to commissioner approval.
"In this instance, the Parties assert that it is in each of their interests to stay this matter while they consider a potential resolution and agree that no party or non-party would be disadvantaged by a stay," the filing from Wednesday stated. "Moreover, a stay is in the Court’s and the public’s interest because a resolution would save judicial resources by eliminating the need for the Court to address the Defendants’ pending motion to dismiss the complaint."
The SEC initiated a lawsuit against Tron, Sun, and BitTorrent in July 2023, accusing the defendants of engaging in market manipulation, fraud, and the issuance of unregistered securities.
The SEC alleged that Sun attempted to inflate the volume of the TRX token through wash trading at the time. According to the regulator, employees of the Tron Foundation conducted over 600,000 wash trades.
Read More: "Could Futures Trading Transform Crypto, Bringing Its 'iPhone Moment'?"
District Court Judge Edgardo Ramos, who is presiding over the case, rejected the SEC's attempt to compel Tron to submit an additional response during pre-trial motions. Last year, Tron filed a motion to dismiss the lawsuit entirely.
Sun serves as an advisor to World Liberty Financial, a company affiliated with U.S. President Donald Trump, after purchasing $30 million worth of the company's WLFI tokens. World Liberty, on its part, acquired Tron's TRX token as part of its token treasury.
Additional reading: Founder of Trump's World Liberty Financial Credits Justin Sun for Project's Success
Note: The last paragraph is not a paraphrase of the original text but a reformatted version of the original text without the hyperlink.Read More: "Hedera trade volume surges 125% with price touching annual minimum"