Crypto World reached out to the Securities and Exchange Commission (SEC) for a comment on Justin Sun’s claim. Further, he spoke about the agency’s loss of credibility in crypto-related legal actions. In addition, a spokesperson directed attention to a previous statement made by SEC Chair Gary Gensler. Back in March, the SEC allegations against Justin Sun and his affiliated companies came to place. 

Gensler emphasised the substantial risks faced by investors when crypto asset securities are offered and sold without proper disclosure.

Gensler stated, “This case demonstrates again the high risk investors face when crypto asset securities are offered and sold without proper disclosure.” His statement highlighted the gravity of the situation and the potential consequences for investors.

Claims on SEC allegations against Justin Sun

Moreover, the allegations against Sun and his companies were quite serious. It claimed that they specifically targeted U.S. investors in unregistered offerings and sales. This resulted in the generation of significant illegal proceeds at the expense of unsuspecting investors. 

SEC allegations against Crypto exchanges for unregistered offering of these Cryptocurrencies

Additionally, they were accused of coordinating wash trading activities on an unregistered trading platform. This created a deceptive appearance of active trading in TRX.

Gensler’s statement also shed light on another concerning aspect of the case. He stated, “Sun further influenced several investors to buy TRX and BTT by planning out a promotional campaign. He and his celebrity promoters hid the fact that the celebrities were paid for their tweets.” 

Protecting investors from false narratives

This revelation highlighted a deliberate attempt to mislead investors through celebrity endorsements. It did not disclose the financial incentives behind them.

In response to Sun’s claims, the SEC’s spokesperson’s reference to Gensler’s statement serves as a reminder. It emphasises the SEC’s position on the importance of proper disclosure and transparency in the crypto market. 

The SEC’s actions and statements reinforce their commitment to protecting investors and ensuring compliance with regulations in the ever-evolving landscape of cryptocurrencies.

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Tanishi is an established writer in the realm of cryptocurrency and blockchain, renowned for her expertise and insightful analysis. With a deep-rooted passion for the dynamic world of digital finance, Tanishi delivers compelling news and articles that captivate a wide-ranging audience.