The US Securities and Exchange Commission has reached a proposed settlement in its long-running case against Tron founder Justin Sun and companies tied to the TRON ecosystem, according to a court filing submitted Thursday in the Southern District of New York. Under the proposed judgment, Rainberry — the company behind BitTorrent, acquired by Sun in 2018 — would pay $10 million in penalties, and the remaining claims against Sun and the associated foundations would be dropped. The agreement still requires federal court approval.
The commission also said it would file a separate notice dismissing claims against DeAndre Cortez Way, known professionally as Soulja Boy, which would conclude the case entirely.
The enforcement action began in 2023 when the SEC charged Sun and his companies, including Tron Foundation, BitTorrent Foundation, and Rainberry, with allegedly offering and selling crypto asset securities TRON (TRX) and BitTorrent (BTT) without registration. The regulator alleged Sun orchestrated wash trades to inflate TRX trading activity and profited millions from unlawful token sales. The case was one of several high-profile crypto enforcement actions the agency pursued at that time. In February 2025, the SEC paused its lawsuit against Sun following a joint request from both parties.
The settlement comes amid a broader recalibration of the SEC’s approach to digital-asset enforcement under Chairman Paul Atkins, who has favored pausing cases in some instances to seek negotiated resolutions. That pivot has drawn criticism from some lawmakers; House Democrats have questioned the decision to pause enforcement actions, including the proceedings involving Sun and Tron.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.