Haciyev Reşit 
The long-running lawsuit in the cryptocurrency market has finally reached a conclusion. The U.S. Securities and Exchange Commission (SEC) has reached a settlement in the case it filed in 2023 against Tron founder Justin Sun and companies affiliated with Tron. According to court documents, the SEC dropped some of its allegations against the Tron Foundation and the BitTorrent Foundation, while Rainberry, the former parent company of BitTorrent, agreed to pay a $10 million civil penalty. The settlement news quickly spread throughout the crypto market. Price movements were observed particularly in the TRX, the native token of the Tron ecosystem, and the BitTorrent token (BTT). Analysts note that resolving the lawsuit could reduce legal uncertainty surrounding the Tron ecosystem and may represent an important development for investor confidence.
Why Was the SEC Lawsuit Filed?
In 2023, the SEC accused Justin Sun and three companies linked to him of selling TRX and BTT tokens as unregistered securities. The regulator also alleged that Sun manipulated the market through transactions known as “wash trading” in order to artificially inflate the price of TRX. Additionally, the SEC claimed that several celebrities were paid to promote the tokens. As part of the case, eight celebrities were included in the investigation. Figures such as Lindsay Lohan and Jake Paul were accused of promoting TRX and BTT tokens on social media without clearly disclosing that the posts were paid advertisements. During the process, six celebrities agreed to pay approximately $400,000 in fines and interest without admitting the allegations, thereby closing their part of the case.
According to court documents, Rainberry, the company responsible for developing the BitTorrent protocol, agreed to pay a $10 million civil penalty as part of the settlement with the SEC. The company also committed not to engage in deceptive practices in securities markets in the future. The defendants did not admit the SEC’s allegations but agreed to the settlement as part of the resolution process. The agreement still requires court approval to take effect.
Justin Sun and the BitTorrent Process
Justin Sun acquired BitTorrent in June 2018 and about a year later launched the BTT token for the BitTorrent ecosystem. This move was considered a significant step for expanding the Tron network and developing a decentralized content-sharing economy. The BTT token was designed to create an incentive mechanism for BitTorrent users during file-sharing processes. During the lawsuit, Sun’s lawyers also raised objections regarding whether the SEC had jurisdiction over an international crypto entrepreneur. The defense emphasized that Tron operates as a global ecosystem and questioned the SEC’s legal authority in the case. Despite these arguments, the parties agreed to accept the jurisdiction of a U.S. court so that settlement negotiations could proceed. This step is seen as an important stage in resolving the case through settlement.
Steps Back in Crypto Lawsuits
Following Donald Trump’s return to the presidency, the SEC has reportedly taken a step back in several cases involving the crypto sector. The regulator previously withdrew some lawsuits against major crypto platforms such as Binance, Coinbase, and Uniswap. Since the beginning of 2025, the SEC is said to have ended more than a dozen crypto-related cases. This development has led to speculation that regulatory pressure on the crypto industry could ease. The settlement between the SEC and Tron is seen as an important turning point in the crypto market. While price volatility has been observed in Tron ecosystem tokens such as TRX and BTT, analysts believe the development may signal a softer regulatory approach toward cryptocurrencies in the United States. If the settlement is approved by the court, much of the legal uncertainty surrounding the Tron ecosystem could be removed.
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