The U.S. Securities and Exchange Commission (SEC) has halted its legal action against Justin Sun, a Chinese cryptocurrency entrepreneur accused of fraud, after he reportedly invested $75 million into a crypto token associated with the Trump family, CNN reported.
Sun, a high-profile figure in the crypto industry, made headlines last year for his extravagant $6.2 million purchase of a banana duct-taped to a wall. He was charged with fraud two years ago, with authorities alleging he had deceived investors through his cryptocurrency ventures. Among his most notable ventures is the World Liberty Token, a digital asset project that shares its revenues with the Trump family.
The decision to pause the case comes as the SEC moves away from stringent cryptocurrency regulation, following a shift in stance from former President Donald Trump. Once a critic of digital currencies, Trump has reversed his position and now openly supports the industry.
While the SEC has not publicly detailed its reasons for halting the case, the decision has sparked discussions on the agency’s evolving approach to crypto enforcement. Critics argue the move signals a broader trend of deregulation under political influence, while supporters see it as a necessary adaptation to the changing financial landscape.
Sun has remained a prominent figure in the cryptocurrency world despite the allegations, and his association with the Trump-backed token has only heightened scrutiny. The World Liberty Token continues to operate, with its financial ties to the former president’s family adding another layer of political intrigue.
The SEC’s decision to step back from the case raises questions about the future of cryptocurrency oversight in the U.S. As regulatory bodies recalibrate their approach, the industry watches closely to see whether this signals a wider shift in enforcement priorities.
