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SEC Pauses Fraud Case Against Crypto Investor Linked to Trump Ventures

Justin Sun, a Chinese crypto entrepreneur who invested $75 million in Trump-backed crypto tokens, sees his legal battle with the SEC put on hold as questions of political influence arise.

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FILE PHOTO: Chinese cryptocurrency entrepreneur Justin Sun speaks at a financial forum in Beijing, China November 4, 2015. Picture taken November 4, 2015. REUTERS/Stringer ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. CHINA OUT./File Photo
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Overview

  • The SEC and Justin Sun jointly requested a 60-day stay in the civil fraud case against him, which a federal judge approved this week.
  • Sun has invested $75 million in World Liberty Financial, a Trump family-backed crypto venture, sending over $50 million in revenue to Trump-owned entities.
  • The SEC previously charged Sun with selling unregistered securities, wash trading, and paying undisclosed celebrity endorsements for his crypto projects.
  • Critics raise concerns about potential corruption, noting the Trump administration’s recent actions to curtail investigations into corporate and political misconduct.
  • The SEC’s decision to pause the case comes alongside its dismissal of lawsuits against other crypto firms, sparking debate over regulatory leniency under Trump’s presidency.