US Court Calls Justin Sun To Testify In SEC Lawsuit

The founder of Tron has 21 days to reply to the SEC’s claims that he broke securities laws.

In response to a recent case from the Securities and Exchange Commission (SEC), the U.S. District Court for the Southern District of New York sent Justin Sun a summons.

If the millionaire doesn’t answer the summons within 21 days, he will be subject to a “default judgement,” which means that he will have to pay fines.

In a filing on Wednesday, the court told Sun to get in touch with Adam B. Gottlieb, an attorney for the SEC, with an answer to the agency’s complaint.

“If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint,” it read.

On March 22, the SEC sued Sun for breaking securities laws by giving out BTT and TRX as unregistered stocks.

The commission also said that the founder, who owns the Tron Foundation, the BitTorrent Foundation, and BitTorrent, did something called “wash trading” to try to change the price of TRX.

Lindsay Lohan, Jake Paul, Michele Mason, Soulja Boy, Lil Yachty, Ne-Yo, and Akon were also charged for advertising similar tokens without reporting their compensation. Last year, the SEC charged Kim Kardashian with the same thing for marketing Ethereum Max.

This year, the SEC and other agencies have been cracking down on crypto-makers who break securities laws. This is because officials and industry leaders are still arguing about what makes something a “security.”

SEC chairman Gary Gensler has consistently used the Howey Test, which defines securities as assets sold to raise money with an expectation of profit from others’ efforts. New York Attorney General Letitia James said Ethereum is a security in a March lawsuit against KuCoin.