- In the Tron securities case, a federal judge rejects the SEC’s motion, supporting Justin Sun’s position and ignoring procedural issues.
- Rejecting the SEC’s request for a pre-trial conference in the Tron litigation, the judge finds that “common enterprise” is uncontested.
- Tron contests the SEC’s jurisdiction, claiming that sales of TRX and BTT were intended for international customers.
- SEC asserts that Justin Sun’s travel to the US gives jurisdiction; Tron contests the applicability of US securities laws.
The US Securities and Exchange Commission (SEC) has filed a move to expedite its continuing securities fraud prosecution against Justin Sun, the founder of Tron Foundation, but a federal judge in New York has denied it. The SEC attempted to resolve procedural issues before to a possible trial; however, the court’s ruling represents a setback for the organization.
Tron Wins After Judge Turns Down SEC Request
The Tron Foundation, Justin Sun, the BitTorrent Foundation, and Rainberry Inc. were the targets of a complaint brought by the SEC, which also requested permission to submit more replies and a pre-trial conference.
As a result, according to the Securities and Exchange Commission, the defendants presented fresh legal defenses in relation to the Howey Test’s “common enterprise” component, which is employed to differentiate investment contracts under US securities laws.
Contrary to legal convention, the SEC observed that the defense made this point after filing their move to dismiss the case. The agency desired to end the dispute or, if that wasn’t possible, obtain authorization to submit an additional response on the subject.
The defense never contested the Howey Test’s “common enterprise” component, so the court denied the regulating firm’s request.
Defense Rejects Charges
In response to the accusations, the attorneys for Tron and Justin Sun claimed that the regulatory body had created a disagreement over a spurious matter. They stated that the third component of the Howey Test, which deals with investing money in the hope of making money off of the labors of others, served as the foundation for their primary defense.
Additionally, the firm’s attorneys argued that the subject would only further complicate the case in opposition to the agency’s requests for additional records.
Additionally, they emphasized that the SEC had misrepresented their position and that they had made a strong case for the third element of the Howey Test.
Challenge to Jurisdiction by Justin Sun
As a result, the defense attorneys assert that the regulatory body lacks jurisdiction over the case in accordance with the Howey Test. They said in March that foreigners were the target market and that the majority of TRX and BTT token transactions were conducted outside of the US.
Tron argued that by attempting to enforce US securities regulations on transactions that took place in other jurisdictions, the regulatory agency is overstepping its bounds.
In April, the SEC filed a counterclaim in this regard, asserting that Justin Sun traveled into the United States on a regular basis during the relevant period. The government argues that there is enough evidence to support U.S. jurisdiction over the case based on these excursions, which it believes were undertaken on behalf of Tron and affiliated businesses.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
