Justin Sun, a well-known figure in the crypto industry, has been charged by the Securities and Exchange Commission (SEC) for allegedly offering and selling crypto “securities” without registering them. As a result, according to a report by Straits Time, Sun has been summoned by a United States District Court, which requires him to respond to the SEC’s allegations within 21 days.
Time Ticks Away for Crypto Mogul Justin Sun?
On March 22nd, the SEC filed a lawsuit against Sun, who launched the Tron Foundation, the BitTorrent Foundation, and Rainberry Incorporated, all wholly-owned companies.
According to the regulator, the SEC’s allegations center around offering and selling two crypto assets, TRX and BTT, which were labeled as securities and required registration with the SEC.
According to the report, The summons has been sent to two locations associated with Sun. The first is at 8 Lady Hill Road in the Tanglin area, and the second is an office space in Suntec Tower Two at 9 Temasek Boulevard, both in Singapore’s central region.
If Justin Sun fails to respond to the summons within the 21-day timeframe, the court may rule in favor of the plaintiff, the SEC. This means that the court would accept the SEC’s allegations as true and could proceed to impose penalties or other consequences on Sun and his companies without further input from him.
The court may also issue a default judgment against Sun, a ruling made in favor of the plaintiff when the defendant fails to respond or appear in court. This could have serious consequences for Sun, as he would be found liable for the allegations made by the SEC without having had the opportunity to defend himself or present evidence in his favor.
Was Justin Sun Arrested In Hong Kong?Bitcoinist reported an ongoing rumor that Justin Sun had been arrested by authorities in Hong Kong upon his arrival in the city. However, there has not been an official response by the authorities about these rumors, and Sun replied immediately on social media Twitter by commenting “4,” implicitly denying the rumors.
Sun must respond to the summons within the given timeframe to avoid any potential default judgment or other negative consequences resulting from failing to engage with the legal process. It is important to note that Sun and his companies have not been found guilty of wrongdoing, and the case must be heard in court before any verdict is reached.
Featured image from Unsplash, chart from TradingView.com