The U.S. Securities and Exchange Commission has reached a proposed settlement in its long-running enforcement action against Tron founder Justin Sun and related entities, a court filing in the Southern District of New York showed Thursday. Under the proposed judgment, Rainberry — the company behind BitTorrent, which Sun acquired in 2018 — would pay $10 million in penalties. In return, the SEC would drop its remaining claims against Sun and the associated foundations, subject to federal court approval.
The commission also said it will file a separate notice dismissing claims against DeAndre Cortez Way, known as Soulja Boy, which would effectively conclude the case if the court approves the filings.
The enforcement action began in 2023, when the SEC charged Sun and several companies tied to the TRON ecosystem — including Tron Foundation, BitTorrent Foundation and Rainberry — alleging they offered and sold crypto-asset securities TRON (TRX) and BitTorrent (BTT) without registering them. The SEC accused Sun of orchestrating wash trades to inflate TRX trading activity and said he profited millions from unlawful token sales. That lawsuit was among several high-profile crypto enforcement matters the agency pursued in that period. In February 2025, the SEC paused its lawsuit against Sun after a joint request from the parties.
The proposed resolution comes amid a broader shift in the SEC’s approach to digital-asset enforcement under Chairman Paul Atkins, who has at times favored pausing cases to seek negotiated outcomes. That shift has drawn criticism from some lawmakers; House Democrats have publicly questioned the decision to pause enforcement actions, including the proceedings involving Sun and Tron.
Edited by Vivian Nguyen. For more on our editorial standards and review practices, see our Editorial Policy.