I just saw an interesting development in a case worth paying attention to. The U.S. SEC officially withdrew the civil fraud lawsuit against Tron founder Justin Sun in March this year, bringing an end to a case that had been unresolved for three years.

Looking back at the background, the SEC originally accused Sun Yuchen and his team of orchestrating over 600k wash trading transactions to artificially inflate the TRX price. But the outcome of this settlement is quite interesting — Rainberry Inc. (formerly BitTorrent, controlled by Sun Yuchen) is required to pay a $10 million fine, but all charges against Sun Yuchen personally, the Tron Foundation, and the BitTorrent Foundation have been dismissed, meaning the SEC can no longer refile the lawsuit.

More importantly, Sun Yuchen did not admit any misconduct and was not held personally responsible. The fine is entirely borne by the corporate entities. From a certain perspective, for a case involving hundreds of thousands of fraudulent transactions, the personal cost to Sun Yuchen is quite minimal.

Interestingly, this dismissal occurred under the leadership of SEC’s new chairman, Paul Atkins. He succeeded Gary Gensler and brought a completely different regulatory style. Since taking office, many SEC crypto cases have been withdrawn or settled. Market observers have especially noted the coincidence of timing — Sun Yuchen invested $75 million in World Liberty Financial, a crypto project associated with the Trump family. The SEC case, filed in March 2023 and dismissed in March 2026, spanned exactly three years.

Justin Sun’s legal risks are now completely cleared. For Tron, during these three years, the TRX price was suppressed by regulatory risks, but now that concern has finally dissipated. Both the Tron Foundation and BitTorrent Foundation have exited the U.S. with a clean regulatory record, which is definitely good news for future institutional collaborations and exchange listings.

Interestingly, celebrities like Lindsay Lohan and Jake Paul, who were named in related promotional allegations, settled as early as 2023. Now that Sun Yuchen’s case is also resolved, the wave of SEC enforcement actions in March 2023 has essentially come to an end.