Justin Sun, a well-known figure in the cryptocurrency industry, was also Accused by the Securities and Exchange Commission (SEC) for allegedly offering and selling crypto “securities” without registering them. As a result, according to A.S a report By Straits Time, Sun has been subpoenaed by a United States District Court, which requires him to respond to the SEC’s allegations within 21 days.
Time away from Crypto Mogul Justin Sun?
On March 22, the SEC filed a lawsuit against Sun, which launched the Tron Foundation, BitTorrent Foundation, and Rainberry Incorporated, all wholly-owned companies.
According to the regulator, the SEC’s allegations center around the offering and sale of two crypto assets, TRX and BTT, which were classified as securities and required registration with the SEC.
According to the report, the summons was sent to two sites associated with Sun. The first is at 8 Lady Hill Road in Tanglin District, and the second is office space in Suntec Tower Two at 9 Temasek Boulevard, both in the Central District of Singapore.
If Justin Sun fails to respond to the summons within the 21-day time frame, the court may rule in favor of the plaintiff, the SEC. This means that the court will accept the SEC’s claims as valid and can proceed to impose sanctions or other consequences on Sun and his companies without further interference from him.
The court may also issue a judgment in absentia against Sun, which is a judgment issued in favor of the plaintiff when the defendant fails to respond or appear in court. This could have dire consequences for Sun, as he would be liable for the allegations made by the SEC without the opportunity to defend himself or present evidence in his favor.
Was Justin Sun arrested in Hong Kong?
bitcoin mentioned Rumor has it that Justin Sun was arrested by the authorities in Hong Kong upon his arrival in the city. However, there was no official response from the authorities to these rumors, and Sun immediately responded on social media Twitter with the comment with the number “4”, tacitly denying the rumors.
Sun must respond to the summons within the specified time frame to avoid any potential default judgment or other adverse consequences resulting from failure to engage in 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 can be reached.
Featured image from Unsplash, chart from TradingView.com