Key Highlights

• The U.S. Securities and Exchange Commission (SEC), alongside the Tron Foundation and Justin Sun, has submitted a motion to a federal court requesting to pause the ongoing legal case initiated by the SEC in 2023.
• This motion draws parallels to earlier motions submitted by the SEC in litigation involving Coinbase and Binance, where similar requests were made for pauses while both parties negotiated potential resolutions.

Recent Developments:
The SEC’s action includes a plea to halt its case against Justin Sun and his company, highlighting a shared interest among the parties to consider a possible settlement. They stated that a pause would benefit all parties involved as well as the public, as it would preserve judicial resources and expedite a resolution.

Legal Context

In July 2023, the SEC filed a lawsuit against Tron, Sun, and BitTorrent, alleging involvement in fraudulent actions, market manipulation, and issuance of unregistered securities. The movement aims to mitigate ongoing judicial costs while opening up paths for possible resolution, similar to actions taken in cases against major crypto exchanges.

Justin Sun, an adviser to World Liberty Financial, has also been linked to transactions involving prominent politicians, including a substantial purchase of WLFI tokens worth $30 million.

“In this case, the Parties submit that it is in each of their interests to stay this matter while they consider a potential resolution and agree that no party or non-party would be prejudiced by a stay,” states the court filing.