The U.S. Securities and Exchange Commission (SEC) has requested a 60-day pause in its lawsuit against crypto entrepreneur Justin Sun and his companies.
Reasons for the Pause
The motion, filed jointly with Sun's lawyers, suggests exploring a potential resolution to the case. The court document did not specify whether the SEC aims to settle or drop the charges.
Allegations Against Justin Sun
The SEC initially filed a lawsuit against Justin Sun in March 2023, accusing him and his companies of fraudulent schemes involving crypto assets. One of the main allegations concerns market manipulation of the TRX token through wash trading practices.
Changing SEC Approach to Crypto
Under Acting Chair Mark Uyeda, the SEC's approach to crypto regulation has shifted, with several high-profile investigations against major crypto companies closing without charges.
The pause in the case against Justin Sun may signal a new approach by the SEC towards the crypto industry, with ongoing bilateral discussions potentially leading to significant regulatory changes.
