The US Securities and Exchange Commission has charged Justin Sun and three of his companies, Tron Foundation Limited, BitTorrent Foundation Limited, and Rainberry Inc., with making unregistered offers and sales of crypto asset securities.
Tronix (TRX) and BitTorrent are two examples (BTT). Sun and his companies were also charged with “fraudulently manipulating the secondary market for TRX through extensive wash trading, which involves the simultaneous or near-simultaneous purchase and sale of a security to make it appear actively traded without an actual change in beneficial ownership, and orchestrating a scheme to pay celebrities to tout TRX and BTT without disclosing their compensation,” according to a statement released by the US Securities and Exchange Commission.