The Securities Exchange Commission(SEC) is on the verge of falling back from the cases against the New York-based crypto exchange Gemini and Justin Sun, the founder of TRON. As per the filing, both SEC and Justin Sun believe that a stay would be ideal for both parties and it would help to avoid all unnecessary legal proceedings. In the case of Gemini, the regulator has informed the Trust that they are closing the investigation and won’t be pursuing any enforcement actions. The U.S. Securities and Exchange Commission is continuously dropping its confrontational crypto enforcements introduced by the former SEC head Gary Gensler.
Justin Sun and The SEC Seek a Stay in the Lawsuit
The SEC and Tron Foundation filed a joint motion, requesting a pause in the lawsuit and requested to conserve judicial resources. This joint move from the SEC and Sun will pause the existing legal battle between them and potentially lead to a settlement. The request filed to the US District Court for the Southern District of New York, requests Judge Edgardo Ramos to impose a stay on this lawsuit for at least 60 days. The SEC and Justin’s legal team informed the court that a pause in the lawsuit would allow both parties to negotiate and find a solution without further legal proceedings.
The SEC filed the lawsuit against Sun in March 2023, for allegedly engaging in the unlicenced offering and sale of securities using the supply of TRON (TRX) and BitTorrent (BTT) tokens. The SEC (Securities and Exchange Commission) reportedly accused and included Sun’s affiliated companies like BitTorrent Foundation, Tron Foundation, and Rainberry in the lawsuit. SEC also alleged that Sun and his companies were involved in wash trading and market manipulation of TRX. Sun had to face serious allegations of paying celebrities to promote TRX and BTT without revealing that they were reimbursed for their support. As per the latest information, several of the celebrities agreed to pay appropriate fines.
Sun’s legal team stated that the accusations and allegations from the SEC were legally flawed, the lawsuit should be dismissed and the case needs to be thrown out. The joint filing and request from Sun and the SEC could lead to a settlement between the two parties. Both parties have informed the court that the stay or delay will not do any harm to either of the parties involved in the case.
Gemini To Be Excluded From Enforcement Actions, Says Cameron Winklevoss!
After a lengthy 699-day investigation, Gemini Trust has been informed that they would not be punished or pursue any enforcement action. Cameron Winklevoss, the co-founder of Gemini, has officially confirmed this news through his X (formerly Twitter) account. On Monday, Cameron Winklevoss informed that the SEC had informed their litigation counsel, Jack Baughman, that it had closed its investigation into Gemini and would not be pursuing an enforcement action against them. He noted that this decision came 699 days after the start of the investigation and 277 days after they had sent a Wells Notice.
Gemini was charged over their now-defunct Earn program, which the Securities and Exchange Council claimed was the sale of unregistered securities. The SEC also announced that the recent exclusion from potential enforcement actions doesn’t mean Gemini is completely exonerated from the lawsuit. The SEC left the door open for further updates and future actions. Winklevoss addressed the recent development in the lawsuit as a milestone in ending the war on crypto. He also stated that the SEC had cost them tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation. He added that, of course, Gemini was not alone, as the SEC’s behavior, in general, towards other crypto companies and projects had cost orders of magnitude more and caused an unquantifiable loss in economic growth for America.
Winklevoss strongly criticized the previous SEC and its administration under Gensler. He expressed that, just as the SEC bars individuals from trading securities if they break the law, there should be a process to bar those, like Gary Gensler, who weaponize the law, as well as those who participate in the weaponization, from ever being appointed to or hired by an agency again, suggesting a lifetime ban in this case.
While concluding his X post, Cameron Winklevoss expressed that he was glad to be turning a page in the industry, but he emphasized that this was not the end; rather, it was the beginning of efforts to ensure that such incidents would never happen again to the crypto industry or any other exciting, new frontier industry in the future. He looked forward to continuing to reform the government and fighting the good fight, believing that amazing things awaited.
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