Advertisement
AD

Main navigation

Advertisement
AD
Advertisement

XRP Fate May Now Befall Tron (TRX) As SEC Sues Justin Sun, BitBoy Ponders

Advertisement
Thu, 23/03/2023 - 15:13
XRP Fate May Now Befall Tron (TRX) As SEC Sues Justin Sun, BitBoy Ponders
Cover image via www.youtube.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News
Advertisement

Crypto blogger and book author Ben Armstrong, also known in the crypto space as BitBoy, has taken to Twitter to share his thoughts on the recent lawsuit initiated by the US SEC regulator against the founder and former chief executive of Tron Foundation – Justin Sun.

Will TRX now be treated as XRP by exchanges?

In his tweet, BitBoy also claimed that Justin Sun did wash trading with TRX. BitBoy at one point in the past was getting close to buying TRX, thinking that it would “have a good run”. However, he never did, apparently, and now Ben Armstrong wonders if the fate that has befallen XRP thanks to the SEC regulator is going to happen to TRX.

After the US securities regulator filed a lawsuit against Ripple Labs in December 2020, many large exchanges began delisting the popular cryptocurrency as the SEC claimed that it was an unregistered security. Among those platforms were Coinbase, Bitstamp, and many others.

Advertisement

Justin Sun, according to the SEC chair Gensler, conducted illegal sales of TRX and BTT tokens, distributing them to investors and at the same time creating secondary markets for these cryptocurrencies through Tron Foundation and BitTorrent. Those secondary markets were allegedly heavily manipulated by Sun using wash trading.

The SEC claims that Sun and his team created a targeted campaign to promote TRX and BTT. This included payments to celebrities, such as Lindsey Lohan and several others.

Over the past few months, the US securities regulator has increased its activity hitting crypto exchanges with lawsuits, as if striving to gain full control over the crypto space.

Related

SEC plans to sue Coinbase

The regulatory agency has sent Coinbase exchange a Wells notice – a document that it usually sends prior to filing a lawsuit against the recipient. Now, a publicly traded exchange Coinbase has received one.

The crypto community has responded to that move of the regulator by criticizing it heavily. Among those who commented on that step on Twitter was Ripple chief technology officer David Schwartz.

In a series of tweets, he doubted that the SEC is actually protecting investors, tweeting “If this is the SEC protecting American investors, imagine if they tried to hurt them”. It also remains doubtful whether the Howey test that the SEC applies to digital tokens can be used to determine whether they are securities or not, according to some highly qualified securities lawyers at major law companies (as pointed out by former Meta’s head of blockchain David Markus).

Prominent crypto trader and podcaster Scott Melker believes that “Coinbase is going to bury the SEC in court”, since the facts are on their side.

Earlier this year, the SEC made a crackdown on the Kraken exchange and initiated a subpoena against the SushiSwap dex. Besides, Gary Gensler stated that Ethereum might also be a security, which goes contrary to the “verdict” that it is not made by the regulator several years earlier.

A
A
A

Related articles

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD