Following up on the SEC complaint last month, Justin Sun has received a subpoena from the US courts. At the same time, Binance.US has announced that it is halting TRX trading. Let’s review these two events.
Justin Sun receives subpoena
Justin Sun, the founder of the Tron Ecosystem (TRX), received a subpoena from the Southern District of New York court on Wednesday.
The summons is a direct reference to the recent Securities and Exchange Commission (SEC) complaint last month. The charges included the promotion of unregistered securities to U.S. investors through BitTorrent’s TRX and BTT, but also market manipulation with wash trading.
Thus, the interested party has 21 days to give a response to Adam Gottlieb, the SEC lawyer, otherwise a default judgment will be rendered:
” If you do not answer, a default judgment will be entered against you for the relief sought in the complaint. You must also file your answer or motion with the court. “
Delisting on Binance.US
At the same time, Binance.US has announced the upcoming removal of trading pairs involving TRX. Indeed, given the regulatory doubts surrounding the asset, it is likely that the exchange is playing it safe in order to limit potential lawsuits.
The deposits will therefore be closed from April 17 and all trading pairs closed on the 18th. As for the products generating returns, these were stopped on Thursday. However, users will still have the possibility to withdraw their assets from the platform even after trading has stopped, and USDT and USDC issued on Tron are not affected by the measure.
In the face of all these events, Justin Sun did not particularly comment. He merely imitated Changpeng Zhao (CZ), the CEO of Binance, by tweeting the number 4. This refers to an earlier tweet by CZ, in which the fourth proposal called for ignoring FUD:
4
– H.E. Justin Sun 孙宇晨 (@justinsuntron) April 13, 2023
Thus, we will certainly have to wait until early May to know the outcome of this complaint, and whether the person concerned will have decided to contact the U.S. justice by then.
