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Reading: SEC strikes to settle long-running lawsuit in opposition to Justin Solar and Tron entities
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SEC strikes to settle long-running lawsuit in opposition to Justin Solar and Tron entities

Editor
Last updated: March 5, 2026 11:10 pm
Editor
Published: March 5, 2026
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SEC strikes to settle long-running lawsuit in opposition to Justin Solar and Tron entities


Contents
  • Origins of the enforcement motion
  • Regulatory panorama shifts beneath new management

The US Securities and Change Fee has agreed to settle its long-running case in opposition to Tron founder Justin Solar and firms tied to the TRON ecosystem, in accordance with a courtroom submitting submitted Thursday within the District Court docket for the Southern District of New York.

Below the proposed judgment, Rainberry would pay $10 million in penalties. The remaining claims in opposition to Solar and the related foundations can be dropped.

Rainberry is the corporate behind BitTorrent, which grew to become linked to the TRON ecosystem after its 2018 acquisition by Solar.

The settlement should nonetheless be accepted by the federal courtroom.

The fee additionally indicated it could file a separate discover dismissing claims in opposition to DeAndre Cortez Method, identified professionally as rapper Soulja Boy, thereby concluding the case fully.

Origins of the enforcement motion

In 2023, the SEC filed fees in opposition to Solar and his corporations, together with Tron Basis, BitTorrent Basis, and Rainberry, for allegedly unregistered affords and gross sales of crypto asset securities TRON (TRX) and BitTorrent (BTT).

The regulator additionally alleged Solar orchestrated wash trades to inflate TRX buying and selling exercise and made hundreds of thousands of {dollars} from unlawful token gross sales.

The case was one in all a number of high-profile enforcement actions the company pursued in opposition to outstanding figures within the digital asset trade throughout that interval.

In February 2025, the SEC paused its lawsuit in opposition to Solar, following a joint request from each events.

Regulatory panorama shifts beneath new management

The settlement arrives amid a notable recalibration of the SEC’s strategy to digital asset enforcement.

Below Chairman Paul Atkins, the company has moved towards pausing sure crypto-related circumstances in favor of pursuing negotiated resolutions.

The pivot has drawn criticism from some lawmakers, nonetheless. Home Democrats have publicly questioned the fee’s determination to pause enforcement actions, together with proceedings in opposition to Solar and Tron.

Disclosure: This text was edited by Vivian Nguyen. For extra data on how we create and evaluate content material, see our Editorial Coverage.
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Reading: SEC strikes to settle long-running lawsuit in opposition to Justin Solar and Tron entities
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