Public Trust Tracker

INV-029 · Money & ethics · Payments to the President

SEC settles Justin Sun case after Trump-crypto buys

Stage 2 of 5: Inquiry · Letters and records requests · Last development 21 Apr 2026

In 2023 the SEC sued crypto entrepreneur Justin Sun and three of his companies, alleging unregistered sales of TRX and BTT, wash trading and undisclosed paid celebrity promotion. Sun became the largest buyer of World Liberty Financial (WLF) tokens ($75 million) and the top holder of the $TRUMP memecoin before Trump's May 2025 holder dinner. The SEC paused the case in February 2025 and in March 2026 moved to dismiss all claims against Sun, with a Sun company (Rainberry) paying a $10 million penalty without admitting or denying the allegations.

The timing between Sun's purchases of Trump-linked crypto and the SEC's decisions is reported by news outlets, advocacy groups and Democratic senators; no official finding links them. The proposed final judgment required court approval, which was not confirmed in the sources reviewed.

Justin Sun
People
Justin Sun, Donald Trump
Agencies
SEC
Reviewed by
SEC, Senate Democrats

Money involved

  • $75 million Sun's purchases of World Liberty tokens (Money to the president, his family or officials) [3]

Timeline

  1. Sun sues World Liberty Financial, alleging it froze his WLFI tokens through an undisclosed blacklisting function and pressured him to mint USD1 on Tron. These are allegations in his complaint. [10]

  2. Sen. Richard Blumenthal, ranking member of the Permanent Subcommittee on Investigations, asks SEC Chairman Paul Atkins for records on enforcement decisions involving Sun and Changpeng Zhao, and on contacts with Trump or Witkoff family members about WLF or $TRUMP. He notes Enforcement Director Margaret Ryan left on 2026-03-16, about 11 days after the Sun dismissal. [9]

  3. Former SEC official Amanda Fischer criticizes the settlement, saying 'The agency is desperate to save face and create the appearance that they're enforcing the law'; Sen. Elizabeth Warren calls it a 'free pass'. [8]

  4. SEC announces a proposed final judgment: Rainberry to pay a $10 million civil penalty and be enjoined, while all claims against Sun, Tron Foundation and BitTorrent Foundation are dismissed with prejudice. Rainberry neither admits nor denies the allegations; the judgment needs court approval. [6]

  5. Sun attends the $TRUMP holders' dinner at Trump's golf club in Sterling, Virginia, listed as the top holder. [5]

  6. CNBC reports Sun holds about $18.6 million of the $TRUMP memecoin, making him the top holder invited to a dinner with the president, and that his stake in Trump-family crypto ventures exceeds $93 million. [4]

  7. The SEC and Sun jointly ask the court to pause the case to 'explore a potential resolution'; the judge grants the stay. [2]

  8. After the 2024 election, Sun announces a $30 million purchase of WLF tokens and joins WLF as an adviser; Mother Jones, citing Bloomberg, reports he later added $45 million for a total of $75 million. [3]

  9. SEC sues Justin Sun, Tron Foundation, BitTorrent Foundation and Rainberry in federal court in Manhattan, alleging unregistered offers of TRX and BTT, wash trading to inflate trading volume, and undisclosed payments to celebrities to promote the tokens. [1]

Responses

  • Justin Sun: Said on X that he was 'pleased to confirm that the SEC has moved to dismiss all claims against me' and that the resolution 'brings closure'. [7]
  • White House (spokeswoman Taylor Rogers): 'The President is and always has been motivated solely by what is best for the American people.' [7]
  • SEC: Declined to comment beyond its letter to the judge. [7]
  • White House (Press Secretary Karoline Leavitt): Before the May 2025 dinner, said it was 'absurd for anyone to insinuate that this president is profiting off of the presidency'; the White House said Trump attended in his personal capacity. [5]
  • World Liberty Financial: A spokesperson declined to comment on Sun's April 2026 lawsuit. [10]

Who is acting on it

  • Lawsuit SEC (2023 lawsuit): Fraud and market-manipulation suit against Justin Sun (22 Mar 2023, What happened next)
  • Letter Sen. Richard Blumenthal (D-CT): Asked SEC Chair Atkins for records on the Sun and Zhao decisions (30 Mar 2026, No reply or result recorded yet)

Sources

  1. SEC Litigation Release 25803, 7 Aug 2023
  2. The Block, 26 Feb 2025
  3. Mother Jones, 28 Feb 2025
  4. CNBC (via NBC 6 South Florida), 20 May 2025
  5. CNN (via KEYT), 23 May 2025
  6. SEC Litigation Release 26496, 5 Mar 2026
  7. Reuters (via Insurance Journal), 6 Mar 2026
  8. Decrypt, 11 Mar 2026
  9. Sen. Blumenthal press release, 30 Mar 2026
  10. CoinDesk, 22 Apr 2026

Cite this case

Public Trust Tracker. "SEC settles Justin Sun case after Trump-crypto buys" (INV-029). Last updated 21 Apr 2026. https://publictrusttracker.org/case/inv-029-sec-settles-justin-sun-case-after-trump-crypto-buys/

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