The American Securities Trading Federation called for a jury trial of Justin Sun, the founder of Tron, for "giving and selling unregistered program planners, controlling transactions and illegally peddling encrypted asset securities."

In a filing filed with the District Court of the Southern District of New York City on March 22nd, SEC nominated Sun, Tron Foundation, BitTorrent Foundation and Rainberry for the supply and sale of Tron (TRX) and BitTorrent (BTT), claiming that the tokens were securities. Financial regulators further accused Wu Dajing of taking part in the "control of the big change deal" to boost public enthusiasm for the two tokens based on seeking celebrity support.

Celebrities promoting TRX and BTT include American rap singer DeAndre Cortez Wei, alias Soulja Boy; Austin Mahone, female artist Lindsay Lohan, YouTuber Jason Wade, and singer Allan Thiam, also known as Akon. Ramon still applies the project to build a "login password metropolis" in Costa Rica and Uganda.

"because these celebrities took the money to promote and plan TRX and BTT, but their peddling on social platforms did not reveal that they had received the money and did not disclose the amount of money they paid," the SEC wrote in a civil complaint. As a result, people are deceived into believing that these celebrities have no prejudice against TRX and BTT, rather than just paying brand spokesmen.

According to SEC, Sun's actions at the level of offer commitment and sale of TRX and BTT violate some aspect of the securities approach. Regulators claim that the founder of TRON was responsible for more than 600,000 TRX swaps between April 2018 and February 2019, causing Sun to sell tokens worth more than $31 million.

Gurbir Grewal, head of administrative law enforcement at SEC, said: "although we are neutral on the relevant technology, we are definitely not neutral in terms of investor protection." "as charged in the civil indictment, Softbank Corp. and others adopted an ancient way of fraudulently harming investors by giving securities without complying with the rules of registration and announcement. then control the industry of such securities."

With the exception of Mahone and Solja Bhoi, other celebrities named and criticized have reached an agreement with SEC to allow refunds, liquidated damages and interest penalties for payments in excess of $400000. Us regulators say the plan "permanently prohibits" Sun from becoming an executive or executive director of any company that gives data-encrypted securities.

In October 2022, SEC announced that it had reached a settlement of $1.2 million with Jenna Kim, mainly because she peddled the EtherumMax (EMax) dynamic password on her social platform account. In February, Gary Gensler, the current chairman of SEC, reached a similar settlement with Wade Pierce, a former NBA player, and then Gary Gensler, the current chairman of SEC, warned celebrities, "if you peddle securities, you don't have to lie about your investment."