The U.S. SEC has provided insights into its potential actions against Tron Founder Justin Sun, citing his frequent visits to the United States as a basis for legal action. The Commission claims that Sun spent over 380 days in the U.S. between 2017 and 2019 and allegedly manipulated the TRX secondary market through wash trading.

Sun’s business trips included key cities like New York, Boston, and San Francisco. The SEC alleges that entrepreneurs with controlled companies purposefully took actions in the U.S. against them.

In a recent update, the SEC clarified that the unnamed platform involved in the TRX token wash trading allegations was Bittrex exchange. Sun reportedly had personal communications with the platform team regarding TRX’s listing in 2018 and signed various documents related to the company’s attributes.

Bittrex, being based in the U.S., further solidified the SEC’s jurisdiction over the defendants. The exchange and its head settled the SEC’s claims by agreeing to a $24 million payment in August 2023 after challenging the agency’s regulatory authority over cryptocurrencies.

In March 2023, the SEC accused Sun and three associated companies of engaging in an unregistered offering of securities through Tron and BitTorrent tokens.

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