SEC Pauses Fraud Case Against Crypto Mogul Linked to Trump-Backed Venture

Justin Sun, a major investor in a Trump-affiliated cryptocurrency project, secures a legal reprieve as questions arise over political influence and regulatory enforcement.

Justin Sun, founder of Tron and advisor to Trump-backed World Liberty Financial (WLF), faces a 60-day stay in the SEC’s fraud case as both parties explore a potential resolution.
Sun is accused of market manipulation, wash trading, and promoting unregistered securities, with allegations dating back to 2017, including undisclosed celebrity endorsements.
Sun has invested $75 million into WLF, a Trump family-backed cryptocurrency project, resulting in over $50 million in payouts to Trump-affiliated entities.
Critics argue that the SEC’s decision to pause the case reflects a broader shift under the Trump administration to ease regulatory scrutiny of the cryptocurrency industry.
The legal developments have sparked concerns about potential conflicts of interest and the use of crypto as a channel for financial gain by Trump and his associates.