Tron Foundation Seeks SEC’s Lawsuit Dismissal

According to the objection of the Tron Foundation and its founder Justin Sun to the lawsuit filed by the SEC, the Commission does not have the power to regulate the sale of foreign digital assets to foreign investors on global platforms outside the United States.

In March 2023, the SEC charged Sun and three associated companies with an unregistered securities offering involving Tron and BitTorrent tokens.

The SEC also accused them of manipulating the secondary market for TRX through “wash trading.” According to the Tron Foundation and its founder, the SEC’s efforts to impose US securities laws on primarily foreign individuals is an overreach.

They have asked the New York court to dismiss the claims, arguing that the tokens were purchased by overseas buyers and not marketed to US residents to avoid any potential SEC statements.

They also argue that the SEC’s classification of secondary token sales on a US-based platform serving users globally as unregistered securities is unfounded.