The U.S. SEC filed charges against Sun Yuchen and three wholly-owned companies, alleging that they were involved in illegal sales of securities, fraud and market manipulation

The U.S. Securities and Exchange Commission (SEC) formally filed charges against Justin Sun, the founder of Tron and a member of Huobi Global Advisory Committee, and his three wholly-owned companies, Tron Foundation, BitTorrent Foundation and BitTorrent, for allegedly illegally selling unregistered securities, fraud and market manipulation. The SEC said that Sun Yuchen tried to artificially increase the trading volume of TRX through the knock-on trading plan. He asked his employees to conduct more than 600,000 TRX virtual transactions between the accounts of the two encrypted asset trading platforms under his control. About 4.5 million to 7.4 million TRX were traded, and the assets used for illegal transactions (TRX) were all provided by Justin Sun himself. In addition, the SEC also accused eight celebrities of illegally selling TRX or BTT without disclosure.