SEC Settlement to End Tron Case Against Justin Sun; Rainberry to Pay $10 Million

The U.S. Securities and Exchange Commission filed a proposed settlement that would end its Tron case against Justin Sun and two related foundations while requiring Rainberry to pay a $10 million civil penalty and accept a permanent injunction.

The proposed final judgment, filed March 5, 2026, in federal court in Manhattan, still requires a judge’s approval before it takes effect.

Rainberry Agrees to $10 Million Penalty and Permanent Injunction

Under the deal, Rainberry, a Tron-affiliated entity formerly known as BitTorrent, would pay a $10 million civil penalty. The proposed judgment gives Rainberry 30 days after entry of the final judgment to pay the $10 million penalty.

The deal would permanently bar Rainberry from conduct that creates a false or misleading appearance of market activity in connection with securities offerings, under Section 17(a)(3) of the Securities Act.

The SEC framed the settlement as resolving its wash trading claim against Rainberry. The agency alleged Rainberry facilitated wash trading in TRX to create a misleading impression of market activity. Rainberry and the other defendants consented to the judgment without admitting or denying the SEC’s allegations.

Settlement Would Dismiss Claims Against Sun and Tron Foundations

If the court signs off, the SEC would dismiss the remainder of its case against the Tron defendants, closing out a matter that has been pending since 2023 and amended in 2024.

“The remaining claims against Rainberry would be dismissed with prejudice,”

the filing said.

“The Final Judgment would also dismiss all claims against Justin Sun, Tron Foundation, and BitTorrent Foundation.”

A dismissal with prejudice would prevent the SEC from bringing the same claims again based on the same underlying conduct. The settlement would leave Rainberry bound by the injunction and penalty while removing the rest of the defendants from the case.

SEC’s Tron Case Centred on TRX/BTT Sales and Market-Manipulation Allegations

The SEC sued Sun, Tron Foundation, BitTorrent Foundation, and Rainberry in March 2023, alleging violations tied to the offering and distribution of TRX and BitTorrent (BTT). The complaint described “bounty programs” and other promotional activities used to distribute tokens, including in the United States.

The case also included market manipulation allegations focused on wash trading. The SEC alleged that in 2018 and 2019, Rainberry facilitated wash trading tied to TRX to inflate reported volume and create the false impression of real demand.

The agency also accused the defendants of paying celebrity endorsers to promote TRX and BTT without proper disclosure of compensation, a line of allegations that broadened the case beyond token issuance and trading conduct.

SEC Drops Remaining Claim Against DeAndre Cortez Way

Alongside the proposed settlement, the SEC filed a notice voluntarily dismissing its pending claim against DeAndre Cortez Way under Section 17(b) of the Securities Act.

The agency said the decision to dismiss was an exercise of discretion and did not necessarily reflect its position in other matters. The move trims the case further and removes the last remaining celebrity-related claim tied to the original 2023 action.

Tron Case Ends With a Defined Penalty as Broader Claims Fall Away

The resolution comes amid broader debates about the direction of U.S. crypto enforcement, with the SEC facing increased scrutiny over how it selects and prioritises cases. In this matter, the SEC’s own description emphasises a narrower endpoint: a penalty and injunction tied to wash trading, with the rest of the case dropped if the court approves.

For Tron, the practical impact is the removal of a long-running legal overhang for Sun and the foundations, while Rainberry exits with a defined sanction and permanent court order.

Sun said in a recent X post

“Today’s resolution brings closure, but I never stopped building. I will continue to focus on accelerating innovation in the United States and around the world and look forward to working with the SEC to develop guidance and regulations for crypto going forward.“