The US Securities and Exchange Commission has agreed to settle its long-running case against Tron founder Justin Sun and companies tied to the TRON ecosystem, according to a court filing submitted Thursday in the District Court for the Southern District of New York.
Under the proposed judgment, Rainberry would pay $10 million in penalties. The remaining claims against Sun and the associated foundations would be dropped.
Rainberry is the company behind BitTorrent, which became linked to the TRON ecosystem after its 2018 acquisition by Sun.
The agreement must still be approved by the federal court.
The commission also indicated it would file a separate notice dismissing claims against DeAndre Cortez Way, known professionally as rapper Soulja Boy, thereby concluding the case entirely.
Origins of the enforcement action
In 2023, the SEC filed charges against Sun and his companies, including Tron Foundation, BitTorrent Foundation, and Rainberry, for allegedly unregistered offers and sales of crypto asset securities TRON ($TRX) and BitTorrent (BTT).
The regulator also alleged Sun orchestrated wash trades to inflate $TRX trading activity and made millions of dollars from illegal token sales.
The case was one of several high-profile enforcement actions the agency pursued against prominent figures in the digital asset industry during that period.
In February 2025, the SEC paused its lawsuit against Sun, following a joint request from both parties.
Regulatory landscape shifts under new leadership
The settlement arrives amid a notable recalibration of the SEC’s approach to digital asset enforcement.
Under Chairman Paul Atkins, the agency has moved toward pausing certain crypto-related cases in favor of pursuing negotiated resolutions.
The pivot has drawn criticism from some lawmakers, however. House Democrats have publicly questioned the commission’s decision to pause enforcement actions, including proceedings against Sun and Tron.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.