Justin Sun applies to dismiss SEC lawsuit: The United States lacks jurisdiction over Tron

This site (120btc.coM): Tron Foundation Limited (Tron Foundation), BitTorrent Foundation Ltd. (BitTorrent Foundation), Justin Sun (Sun Yuchen) and Rainberry, Inc. (BitTorrent’s predecessor) recently (5/30) filed a motion to dismiss against the U.S. Securities and Exchange Commission (SEC), accusing the SEC’s lawsuit of being too general and lacking specific factual support, and trying to apply U.S. securities laws to foreign entities with only tenuous ties to the United States. and activities.

## Justin Sun filed a motion to dismiss against the SEC, challenging the legal basis

Justin Sun believed that it was not provided to U.S. residents

The defendant believed that the SEC’s accusation Vague and failed to provide specific facts to support its claims.

The Tron protocol was developed in 2017 to use blockchain technology to update online entertainment, and established the non-profit Tron Foundation in Singapore. The TRX token was initially launched on the Ethereum blockchain and later moved to the Tron blockchain, with its initial coin offering (ICO) conducted overseas and not targeting U.S. residents. The BitTorrent protocol was acquired by entities related to Justin Sun and combined with blockchain technology, issued BTT tokens for use by the protocol.

Justin Sun: The United States lacks jurisdiction

The defendants believe that the SEC's complaint fails to present sufficient facts to make its claims reasonable, especially under the "fraud" charge.

They stressed that the court lacked personal jurisdiction over them because the alleged activities were conducted overseas without sufficient ties to the United States. In addition, the SEC's complaint did not specify the role of each defendant in the alleged misconduct and failed to prove that the transactions in question were subject to U.S. securities laws, citing the Supreme Court's Morrison decision to limit the extraterritorial application of these laws.

The SEC’s fraud charges lacked specificity and failed to demonstrate a strong inference of fraudulent intent. The defendants also claimed that they lacked fair notice and could not foresee that their actions would be subject to U.S. securities laws.

Justin Sun’s defense evaluation

The defense claims that the SEC does not have sufficient evidence to prove that the court has jurisdiction over Justin Sun and his foreign companies because the initial issuance of TRX and BTT was conducted outside the United States and was not targeted at the U.S. market. or investors.

In addition, the SEC’s charges lack specific details and do not clearly describe the conduct of each defendant. Citing the Morrison case, the defendants argued that the transactions of TRX and BTT should not be governed by U.S. securities laws, and the SEC’s fraud charges also appeared weak due to lack of specificity.

The case is expected to be concluded before September

However, in the end, we still have to wait for the court decision. Justin Sun’s case will also have an impact on a wide range of cryptocurrency issuers, further limiting or expanding the SEC’s jurisdiction over overseas entities. The SEC will reply before 6/28, and Justin Sun will reply again on 7/26. It is expected that the judge will announce the result before September this year.

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