The founder of blockchain platform Tron, Justin Sun, and the U.S. Securities and Exchange Commission (SEC) have jointly requested a 60-day pause in their ongoing legal battle to explore settlement possibilities, according to a recent court filing.
The filing, submitted on February 26 to the U.S. District Court for the Southern District of New York, asks Judge Edgardo Ramos to temporarily halt proceedings while both parties engage in settlement discussions. The pause would allow negotiations to proceed without further litigation costs.
The SEC initiated legal action against Sun in March 2023, claiming he conducted unregistered securities offerings through the distribution of TRON (TRX) and BitTorrent (BTT) tokens. The regulatory body also accused Sun of artificially inflating trading volumes through wash trading and paying celebrities like Lindsay Lohan and Soulja Boy to promote the tokens without disclosing their compensation.
Several celebrities named in the case have already reached settlements with the SEC, agreeing to pay fines while not admitting to any wrongdoing.
The request for a stay comes as the court was evaluating Sun's motion to dismiss the lawsuit, in which his legal team argued that the SEC's claims lacked legal merit. If approved, the stay would postpone any ruling on the dismissal motion during the negotiation period.
Both parties have committed to providing a joint status update within 60 days, informing the court whether they've reached a settlement or if litigation should continue. While the joint filing suggests potential common ground for negotiation, no agreement has been confirmed, and the terms of any possible settlement remain unknown.
The court has yet to issue a decision on the stay request.