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- The attorneys representing Justin Sun requested a second deadline extension, which was previously set on September 20, to ensure mutual agreements for an organized case proceeding.
- The United States SEC sued Justin Sun and his group of companies for enabling fraud and violating securities law through Tron (TRX) and BitTorrent (BTT).
The final results of the legal battle between crypto billionaire Justin Sun and the United States Securities and Exchange Commission (SEC) are expected to take longer than previously expected after Judge Edgardo Ramos of the Southern District of New York approved a request by the defendant’s attorney.
The defendant’s attorney gave three reasons why the plea hearing should be moved forward. Furthermore, the Tron Foundation intends to have the TRX ecosystem decentralized and not subject to securities law based on its initial activities.
What the Defendants Are Doing to Secure Tron and BitTorrent’s Future Survival
The Tron and BitTorrent ecosystems are vibrant with Web3 platforms that are decentralized. As a result, Fenwick & West LLP is obligated to protect the Tron ecosystem from falling into the SEC’s trap.
According to a memo dated September 14, the defendants’ attorney wrote to Judge Ramos requesting additional time on the response to the complaint until December 08, 2023. Notably, the Judge had previously granted the defendants’ attorneys a deadline extension to September 20, 2023, but recent events have advised the team otherwise.
One of the reasons that the defendants’ attorneys filed for a deadline extension was due to the fact that Tron Foundation was legally dissolved effective April 06, 2023, and is currently seeking reinstatement as a Singapore entity. If reinstated, the two parties are expected to formulate an agreement plan to unify the set deadlines. Moreover, an agreement between the defendant and the plaintiff is expected to reduce the court process by allowing a smooth case proceeding.
The other noted reason for the deadline extension was to allow the parties additional time to explore possible resolutions of the claims before the motion practice. And of the main reasons that the defendants’ attorney sought after deadline extension was to evaluate the recent decision by Judge Analisa Torres on the SEC vs. Ripple case, whereby the exchange sales were deemed not securities.
According to the SEC charges against Justin Sun and the three wholly-owned companies earlier this year, the defendants participated in TRX and BTT wash trading and participated in the unregistered offer of crypto asset securities. The SEC also charged several celebrities who allegedly helped the Tron Foundation sell its products to the secondary market.
TRX Market Outlook
Despite the Tron (TRX) ecosystem experiencing significant legal pressure, the overall trend has been positive YTD. According to the latest crypto market data, TRX traded around $0.084 on Monday, up approximately 40 percent in the past year. The $7.5 billion Tron ecosystem has experienced significant growth, especially in DeFi protocols, stablecoins, and smart contracts offered. As of reporting time, the Tron ecosystem was the largest in TVL with about $6.54 billion and a stablecoins market cap of about $44.53 billion
