
US regulators sue crypto founders for fraud and securities violations
ISTANBUL: The Securities and Exchange Commission (SEC), the oversight agency of the United States (US) government responsible for regulating the securities market and protecting investors, is suing the founders and business executives of cryptocurrency networks for fraud and violations of securities laws.
The SEC on Wednesday announced charges against crypto asset entrepreneur Justin Sun and three of his wholly-owned companies — Tron Foundation Limited, BitTorrent Foundation Ltd and Rainberry Inc formerly known as BitTorrent.
The charges include the unregistered offer and sale of securities of crypto assets Tronix (TRX) and BitTorrent (BTT), Anadolu reported.
According to the SEC, it also charged Sun and his company with several other charges including manipulation of the secondary market for TRX through “money laundering” trades.
TRX price is down over 11 percent at 5pm EDT.
The SEC in a separate statement informed that the regulator also simultaneously prosecuted eight celebrities for illegally promoting TRX and BTT without disclosing that they were compensated.
The complaint alleges that Sun and his company offered and sold TRX and BTT as investments through various unregistered “gift programs.”