Tron Petitions for Dismissal of SEC Suit, Questions Allegations
- Tron Foundation challenges SEC lawsuit, arguing actions primarily occurred outside the U.S., questioning the sufficiency of evidence and potential adverse consequences.
- Tron criticized the SEC for broad allegations without specific charges, giving a two-week window for SEC response.
Last year in March, the U.S. Securities and Exchange Commission (SEC) charged crypto entrepreneur Justin Sun and three of his fully-owned enterprises: Tron Foundation Limited, BitTorrent Foundation Ltd., and Rainberry Inc. (previously BitTorrent). The charges were related to the unregistered sale of crypto asset securities Tronix (TRX) and BitTorrent (BTT).
However, recently, the layer-1 blockchain Tron has petitioned a federal court in New York to reject the SEC's lawsuit, contending that the regulator is focusing on actions primarily conducted outside the United States.
As per Tron's defense argument, there's an absence of substantial proof from the SEC backing its accusations and cautions against the possible adverse impact. Tron foundation also asserts that even assuming the SEC had authority, their tokens fail to fulfill the requirements for classification as investment contracts under U.S. securities laws.
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Additionally, Tron criticizes the SEC for depending on broad statements and assumptions to substantiate its accusations instead of presenting specific factual charges. The SEC has a two-week timeframe to address Tron's request for dismissal, with no response from them as of now.
Meanwhile, in other news, a recent report reveals that in 2023, the Tron network was responsible for 45% of total illicit volume, as per findings from analysts at blockchain forensics company TRM Labs.
Edited by Harshajit Sarmah
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