The TRON founder and the other two accused have 21 days to respond to the summons or face further punitive action, the SEC says.
Securities and Exchange Commission (seconds) has issued summons to tron founded by justin sun And some other celebrities on TRX token. According to reports, the securities regulator wants to hear from Sun, American rapper Soulja Boy and YouTube sensation Austin Mahone following his civil complaint.
Last month, the SEC accused several celebrities, including all three, of being involved in an unregistered token offering. The commission alleged that Sun, Soulja Boy, Mahone, Lindsay Lohan, Jake Paul, Kendra Lust, Lil Yachty, Akon, and Ne-Yo promoted TRX and the BitTorrent token (BTT). Furthermore, the SEC claimed that the celebrities paid them without disclosing the digital assets.
per a agency release In March, most of the accused stars reportedly settled market manipulation charges with the SEC. Celebrities who agreed to a settlement without accepting or denying the SEC’s findings forfeited their earnings. However, Sun, Soulja Boy (real name DeAndre Cortez Way), and Mahone remain the only holdouts. The three have 21 days to respond to the SEC’s summons or risk defaulting on a decision “for the relief sought in the complaint.”
Other Developments From SEC Summons Against TRON Founder
In addition to the subpoenas, the SEC filed a court petition to block TRON founder Sun and his companies from offering securities — including digital assets. The regulatory agency also wants Sun and its affiliates to forfeit their earnings and interest and pay a civil penalty. In addition, the SEC seeks an injunction against Sun that bars him from serving in any securities-issuing company. The embattled crypto entrepreneur previously served as Grenada’s Permanent Representative to the World Trade Organization in Geneva.
Beyond the Sun, SEC calls for sanctions on Soulja Boy and Mahone. The commission wants to bar him from receiving funding for future crypto endorsements. Besides this, the agency also wants the US pair to pay its own fine.
Sun dismisses SEC complaint as “lacking merit”
Despite SEC allegations of TRX trading volume manipulation, unregistered securities sales, and celebrity kickbacks, Sun remains defiant. At the time the regulator filed the complaint on March 22, the crypto entrepreneur responded on Twitter, Saying,
“The SEC’s civil complaint is the latest example of action taken against well-known players in the blockchain and crypto space. We believe there is no merit to the complaint and, in the meantime, will continue to build the most decentralized financial system possible.”
In addition, flax spiked points out that the SEC’s crypto regulatory framework is still quite inadequate and needs to be further developed. As a result, TRON founder offered to “Collaborate with governments and regulatory bodies globally that are dedicated to establishing transparent guidelines.” According to Sun, these guidelines will ensure proper oversight of the digital asset space. He also believes that well-crafted guidelines will maximize the importance of the role of crypto.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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