The U.S. Securities and Exchange Commission (SEC) and Justin Sun, along with three of his companies, have jointly requested a federal court to pause the regulator’s case against him to explore a possible settlement. The motion, filed on Feb. 26, asks for a 60-day stay to allow negotiations to proceed, signaling potential resolution efforts between both parties.
The SEC’s lawsuit, filed in March 2023, accused Sun and his companies of selling unregistered securities through Tron (TRX) and BitTorrent (BTT) token sales, as well as engaging in manipulative wash trading. Sun previously attempted to dismiss the case, arguing that the SEC lacked jurisdiction since most of the transactions occurred outside the U.S. However, the regulator countered that Sun’s extensive travel within the country granted it authority over the matter.
This request follows the SEC’s recent moves to stay or dismiss other high-profile crypto cases, including those against Binance and Coinbase. Reports suggest that the agency is prioritizing cases with imminent deadlines and may also pause lawsuits against Kraken and Ripple, both of which face court proceedings in the coming months. The shift aligns with growing political discussions on crypto regulation, particularly as former President Donald Trump has advocated for reduced enforcement in the sector.
Sun’s legal troubles come as he expands his influence in the crypto space, including major investments in Trump’s World Liberty Financial project. While neither the SEC nor Tron representatives have commented on the case’s latest development, the stay request indicates both sides are considering a resolution rather than prolonged litigation.
