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SEC: Justin Sun could face default judgment if no response in 21 days



The United States District Court issued a summon to Justin Sun, founder of the crypto, Tron. The “Summon in a civil action” was served to Sun’s Singapore address and the order stated that he must serve on the plaintiff, the Securities and Exchange Commission an answer in accordance with the complaint attached. Moreso, he responds within 21 days, not counting from the day of the issue.

Having been served his Singapore address, Sun’s Twitter bio displayed his location as Switzerland, but his post a day before the court issue showies he just arrived in Hong Kong.

In the filing, Sun was directed to serve the answer to the SEC’s attorney, Adam B. Gottlieb, and to the court. The court stated that, if he fails to respond, “judgment by default will be entered against him for the relief demanded in the complaint.” The move suggests penalties that are related to alleged securities law violations.

The Securities and Exchange Commission on March 22, filed a civil lawsuit against Justin Sun, the Tron Foundation, the BitTorrent Foundation, and Rainberry over the “orchestration of the unregistered offer and sale, manipulative trading, and unlawful touting” crypto asset securities. 

SEC alleged that Tron (TRX) and BitTorrent (BTT) are securities and weren’t registered as required. Also, Sun was alleged to have driven public interest in TRX and BTT by engaging in “manipulative wash trading.” Tied to the “manipulation” was the help of celebrities like Soulja Boy, Lindsay Lohan, Jake Paul, and Akon. However, all the celebrities mentioned to be involved have settled with the SEC except Austin Mahone and Soulja Boy at the time of writing. 

More severely, if the SEC prevails in the case, it said it has plans to permanently prohibit Sun from taking up the role of an officer or director of any firm offering crypto securities.

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