Sun Yuchen Reaches Settlement with U.S. SEC, Pays $10 Million to Conclude Civil Fraud Lawsuit
The U.S. Securities and Exchange Commission (SEC) announced on Thursday that it has reached a $10 million settlement with cryptocurrency entrepreneur Sun Yuchen to resolve the SEC's civil fraud lawsuit regarding his trading activities. The settlement requires court approval, and the funds will be paid by a company under Sun Yuchen's control.
The U.S. Securities and Exchange Commission (SEC) sued Sun Yuchen and his Tron Foundation, BitTorrent Foundation, and Rainberry Inc. in March 2023.
The SEC accused them of conspiring to illegally distribute the crypto assets Tronix and BitTorrent, artificially inflating trading volume, and concealing payments made to celebrity endorsers.
Sun Yuchen, 35, was accused of illegally profiting $31 million by directing employees to conduct hundreds of thousands of Tronix transactions between two accounts he controlled, creating the illusion of legitimate trading activity.
He was also accused of hiring celebrities, including actress Lindsay Lohan, singers Akon and Ne-Yo, and social media influencer Jake Paul, to promote Tronix and BitTorrent on social media while concealing the compensation they received for doing so.
The case was brought during Gary Gensler’s tenure as SEC chairman, who has faced strong opposition from the industry for his support of stricter regulation of cryptocurrencies.
In February 2025, after Trump's return to the White House, the SEC paused the case to seek a possible resolution.