The U.S. Securities and Exchange Commission has ended its lawsuit against crypto entrepreneur Justin Sun after reaching a $10 million settlement with one of his companies, closing a legal dispute that began three years ago. The settlement follows a series of SEC actions that were dropped or settled in recent months, including cases involving Kraken and Coinbase.

The resolution comes as part of a broader shift in U.S. crypto policy. The Commodity Futures Trading Commission is finalising approval for crypto perpetual futures and coordinating with the SEC on rules for other digital assets. At the same time, the CFTC has cut nearly all enforcement staff in its Chicago office, raising questions about the regulator’s capacity to pursue complex cases.

SEC Alleges TRX, BTT Violations

In a letter filed yesterday (Thursday) in federal court in Manhattan, the SEC said Rainberry, a Sun-linked company, agreed to pay the fine and that it would drop claims against Sun, the Tron Foundation, and the BitTorrent Foundation. Sun and the companies did not admit or deny the allegations.

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The SEC first brought the case in March 2023. It accused Sun and related companies of selling unregistered crypto assets, including TRX and BTT tokens linked to the Tron ecosystem.

The regulator also alleged Sun directed “manipulative wash trading” of TRX and ran promotional campaigns using celebrities. Several public figures, including Akon, Lindsay Lohan, and YouTuber Jake Paul, promoted the tokens “without disclosing their compensation.” Sun disputed the accusations, arguing the SEC was applying U.S. law to “predominantly foreign conduct.”

Sun Invests $75M in Trump-Linked Crypto

Sun’s ties to a Trump-linked crypto venture have drawn additional scrutiny. In November 2024, he became the largest investor in World Liberty Financial, a Trump family project, initially buying $30 million in tokens and later increasing the investment to $75 million.

Lawmakers previously warned that failing to pursue the case could “undermine investors’ confidence” and raised concerns about a potential “pay-to-play scheme.”

After the settlement , Sun posted on X that “today’s resolution brings closure” and said he looked forward to “working with the SEC to develop guidance and regulations for crypto going forward.”