The Tron Foundation and its founder, Justin Sun, have been charged by the U.S. Securities and Exchange Commission (SEC) for violating securities laws by offering TRX and other coins as an unregistered security.
The attack has arrived on the same day that Coinbase have been issued with a Wells notice in what seems to be a co-ordinated attack from the SEC
The SEC has also implicated Bittorrent token (BTT), launched after Sun’s acquisition of Bittorrent Inc. in 2018, in these offerings. The SEC further alleges that Sun masterminded a scheme to manipulate the price of tron (TRX) on crypto exchanges by using multiple accounts to engage in daily wash trading activities. In an article on bitcoin.com The SEC states :
“All TRX purchasers, including those who tendered value for TRX other than cash or crypto assets, invested in a common enterprise alongside Sun and the Tron Foundation, who at all times retained significant TRX holdings”
Sun reportedly directed his team to move significant amounts of TRX across various exchanges, with one of the implicated accounts belonging to his father. The SEC claims that between 4.5 million and 7.4 million TRX were subject to this wash trading scheme daily, with over 600,000 operations involved.
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