Justin Sun’s Tron Files Motion to Dismiss Lawsuit on Security Violations in Federal Court

Tron Foundation has filed to dismiss a class-action lawsuit against them in a New York federal court according to a motion filed on Dec 15. The lawsuit claims that Tron violated securities regulations during its Initial Coin Offering (ICO) back in 2017; Tron managed to raise around $70 billion at the time.

In their defense, Tron now claims that the lawsuit against them is ‘fatally flawed’ and, in fact, not connected to the state of New York. The foundation notes that the lead plaintiffs did not participate in the 2017 ICO; they also filed the lawsuit two years after the TRX ICO was complete. The filing reads,

“Despite having not purchased during the initial offering or from Tron, plaintiffs attempt to form a nexus between their purchases and alleged marketing activities by Tron.”

The motion further highlights that the plaintiffs, in this case, acquired their TRX tokens through Binance, a secondary exchange. Consequently, it argues that the matter at hand is not an issue of a securities violation but secondary market settlements.

Tron also defended itself on a misleading whitepaper; the foundation stated that this was an afterthought by the plaintiffs.

“This claim was not even pleaded in the original complaint, and it is nothing but a litigation afterthought.”

Last but not least, Tron’s motion argued that the plaintiffs’ lawsuit did not allege any exposure to U.S clients during the TRX ICO in 2017. As reported earlier by BEG, this lawsuit was filed on Apr 3 alongside a couple of other actions against prominent players in the crypto field, citing violation through the sale of unregistered securities.

TRON (TRX) Live Price

1 TRX/USD =$0.1009 change ~ 0.77%

Coin Market Cap

$7.23 Billion

24 Hour Volume

$762.88 Million

24 Hour VWAP


24 Hour Change


Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide