$75 Million Investment: Did Sun “Freeze” the SEC Lawsuit?

Previously, the SEC accused Chinese entrepreneur Justin Sun and his companies (Tron, BitTorrent, and Rainberry) of selling unregistered securities and manipulating token prices. However, both Sun’s legal team and SEC attorneys recently requested a pause in the civil fraud case, citing the interests of both parties and the public.

This development took many by surprise. The SEC, the top financial regulator in the U.S., has historically maintained a strict (and sometimes overly aggressive) approach toward the crypto industry.

Recently, the SEC has also dropped its lawsuit against Coinbase, along with several other crypto companies. Some analysts interpret this as a clear shift in the regulator’s priorities.

This is, I guess, going to be the new approach — hands off crypto, not enforcing fraud … and I don’t think it’s going to end well. The SEC is going to back off — because that’s what the Trump administration wants — on whatever enforcement they are able to do. I think it’s a very worrisome situation,

said Richard Painter, a law professor at the University of Minnesota.

Investments and Political Ties

Beyond his legal battles, the crypto community has taken notice of Justin Sun’s past investment. He reportedly put $75 million into World Liberty, a project with strong ties to U.S. President Donald Trump. Under the contract terms, the Trump family is entitled to 75% of the company’s revenue, potentially earning tens of millions of dollars. Some users believe this could be a hidden attempt to bribe the president.

Additionally, financial transactions like these—where money of unclear origin ends up benefiting a specific politician—inevitably spark concerns about corruption. As regulators push for greater transparency, such investments raise serious questions about the role of political figures in crypto-related financial dealings.

Related: World Liberty Financial to Establish Strategic Token Reserve

Trump’s Overly Lenient Policies

It’s also worth noting that the Trump administration is weakening existing regulatory standards in favor of greater corporate freedom. Beyond the cryptocurrency sector, authorities have suspended multiple corporate bribery investigations and removed inspectors from several federal agencies. These actions sparked mixed reactions among politicians and law enforcement officials, who warn of potential long-term consequences for the justice system and anti-corruption efforts.

Related: Justin Sun: Express from Ripple to Huobi

Crypto advocates, on the other hand, see these developments as an opportunity to build a more flexible financial system. They argue that endorsements from influential figures could foster a favorable regulatory environment and drive blockchain innovation. Still, some analysts caution that a surge in fraud and corruption could end up driving investors away rather than attracting them.