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BTT, TRX, HT Plummet Following Justin Sun Fraud Case by SEC

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BTT, TRX, HT Plummet Following Justin Sun’s Fraud Case by SEC
BTT, TRX, HT Plummet Following Justin Sun’s Fraud Case by SEC

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The U.S. Security and Exchange Commission has sued Justin Sun, Tron’s founder, for selling and distributing unregistered securities. In a press release, the SEC stated that the sale and distribution of unregistered TRX and BTT tokens violated section 5 of the Securities act. 

As a result, Justin Sun, the Tron Foundation, the BitTorrent Foundation, and BitTorrent (now Rainberry) face fraud and market manipulation charges. The SEC alleged that the parties promoted a wash trading scheme to manipulate TRX’s trading volume. 

However, Justin Sun denied such claims on Twitter, stating that the SEC regulatory framework was still developing.  

Justin Sun Brushes Off Allegations

Justin Sun Tron’s founder responded quickly to the lawsuit claiming it lacked merit. Also, he believes that the accusations are part of the SEC’s attempts to victimize the crypto sector.

He stated that his team remains committed to building the most decentralized financial system available. Sun believes that the SEC’s regulatory framework still requires much development and affirmed his desire to collaborate with government agencies based on transparent guidelines. 

Meanwhile, Justin Sun is not the only famous individual in the eye of the regulatory storm. The SEC sued actress and singer Lindsay Lohan, an influencer and boxer Jake Paul, and Michael Mason. Other defendants include rappers and singers Soulja Boy, Lil Yachty, Ne-Yo, and Akon.

These lawsuits centered on the illegal promotion of TRX and BTT without disclosing to the public they received payment for the act. Most of the accused celebrities opted for a settlement of $400,000 for fines, interest, and restitution in response to the SEC’s charges. However, Cortez Way and Mahone are yet to agree to the settlement proposal.

SEC Accused Justin Sun of Attempt to Inflate TRX’s Trading Volume Artificially

The SEC accused Justin Sun of attempting to artificially spike the trading volume of TRX between April 2018 and February 2019. According to the SEC, this was in collaboration with Tron Foundation employees. These employees executed over 600,000 illegal trades using accounts controlled by Tron and BitTorrent Foundations.

Also, the SEC stated that Sun sold most of his TRX tokens on the secondary market, thus making a profit of $31 million. They labeled this act as the sale of illegal and unregistered TRX tokens.

SEC Chair Gary Gensler believes Sun convinced investors to Purchase the TRX and BTT tokens through deceptive campaigns. Celebrities and public figures promoted these campaigns without disclosing their earnings, for the promotion.

Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, said despite being neutral, the SEC is resolute in protecting investors. He said Sun would not get away with misleading investors into purchasing unregistered securities and manipulating the markets.

After the SEC’s press release TRX, HT, JST, and SUN dropped in the market, showing investors’ reaction to the SEC’s statements. TRX took the worst hit, falling more than 15% in under two hours from $0.06720 to $0.056, while the Huobi token (HT) fell 10% from $3,952 to $3,553.

However, the price drop could also result from Federal Reserve Chairman Jerome Powell announcing an increase in interest rates. Even the number one coin Bitcoin took a hit after the announcement. But even though the 24-hour price gains are red, most cryptocurrencies hold their seven days gains.

Crypto Projects to Consider

Investors seek new opportunities to capitalize on potential gains as the cryptocurrency market bounces back. The following projects offer promising avenues for higher yields.

Fight Out (FGHT)

Revolutionizing the fitness and health industry, Fight Out has quickly become one of the top-ranked presales of 2023. Their move-to-earn platform incentivizes users to engage in physical activities from different locations worldwide by rewarding them with its utility token, FGHT.

Fight Out plans to open 20 gyms in various physical locations exclusively for FGHT token holders as a part of their commitment. These gyms will feature state-of-the-art equipment and facilitate community interactions and contests. Combining Web3 and Metaverse technology, Fight Out offers users an effective platform to achieve their fitness goals.

Their mobile app provides users with analytics and fitness plans that range from amateur to professional levels. The platform has also enlisted top athletes as brand ambassadors and coaches. All activities within the ecosystem are powered by FGHT, while the off-chain token REPS rewards users. REPS can be used for specific health and fitness subscriptions and to access training videos.

FGHT raised over $5.5 million in its presale and currently trades at $0.0309. FGHT is set to list on centralized exchanges by April 5, 2023, with an expected increase in value. Bonus rewards of up to 67% extra tokens will be given to participants who purchased at least $50k worth of FGHT tokens.

Mask Network (MASK)

Mask Network is a highly secure messaging protocol that empowers users to send encrypted messages on popular social media platforms such as Twitter and Facebook, providing unprecedented privacy and security. Launched in July 2017, the network has since expanded its capabilities to support various features and continues evolving. Most recently, it enabled direct funding of Gitcoin grant campaigns through Twitter, and it plans to add peer-to-peer (P2P) payments and decentralized storage to its already impressive list of features.

The Mask Network allows users to interact with decentralized applications (DApps), share files on a decentralized platform, and send and receive cryptocurrencies securely. It is built on the Ethereum blockchain and secured by a proof-of-stake mechanism. Despite its advanced features and superior security, it is currently trading at around $6, making it an affordable option for anyone looking for a highly secure and private messaging platform.

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