SEC says Justin Sun ‘traveled extensively’ to US, giving sway to lawsuit

The United States Securities and Exchange Commission (SEC) has revised its lawsuit against Tron founder Justin Sun, arguing that his extensive travel within the country establishes jurisdiction.

The SEC asserts “personal jurisdiction” over Sun, Tron, and two other businesses under his control, stating they purposefully directed actions toward the United States.

Sun’s U.S. Business Trips

According to the SEC’s amended complaint filed in a Manhattan federal court on April 17, Sun spent over 380 days in the U.S. between 2017 and 2019. These trips, to New York City, Boston, and San Francisco, were allegedly conducted on behalf of the Tron Foundation, the BitTorrent Foundation, and Rainberry.

The SEC reiterated its accusations from the original lawsuit, asserting that Sun and his businesses sold unregistered securities through Tron (TRX) and BitTorrent (BTT) tokens, and engaged in manipulative wash trading.

The SEC alleges that TRX and BTT tokens were promoted, offered, and sold to consumers and investors in the United States, while Sun extensively traveled within the country during this period.

Claims Regarding Wash Trading

Additionally, the SEC claims that Sun’s alleged TRX wash trades occurred on the Seattle-based crypto exchange Bittrex.

In late March, Sun, a Chinese-born Grenadian citizen, sought to dismiss the lawsuit, arguing that the SEC applied U.S. security laws to predominantly foreign conduct. He claimed the tokens were sold entirely overseas and took steps to avoid the U.S. market.

Sun’s lawyers have not yet responded to requests for comment, indicating an ongoing legal battle between Sun and the SEC.