Justin Sun, a well-known figure in the crypto industry, has been charged by the Securities and Exchange Commission (SEC) for offering and selling crypto “securities” without registering them. As a result, according to a Report by Straits Time, Sun has been subpoenaed by a US district court, requiring him to respond to the SEC’s allegations within 21 days.
Time ticking away for crypto mogul Justin Sun?
On March 22, the SEC filed a lawsuit against Sun, which started the Tron Foundation, BitTorrent Foundation and Rainberry Incorporated, all wholly owned companies.
According to the regulator, the SEC’s charges relate to the offering and sale of two crypto assets, TRX and BTT, which were labeled as securities and required registration with the SEC.
According to the report, the subpoena has been sent to two locations associated with Sun. The first is at 8 Lady Hill Road in the Tanglin area, and the second is an office space in Suntec Tower Two at 9 Temasek Boulevard, both in Singapore’s central region.
If Justin Sun fails to respond to the summons within the 21-day time frame, the court may enter judgment in favor of the plaintiff, SEC. This means that the court would accept the SEC’s allegations as true and could proceed to impose penalties or other consequences on Sun and his company without further input from him.
The court can also enter a default judgment against Sun, a ruling in favor of the plaintiff when the defendant does not answer or appear in court. This could have serious consequences for Sun, as he would be held liable for the charges by the SEC without having had the opportunity to defend himself or present evidence in his favor.
Was Justin Sun Arrested in Hong Kong?
reported an ongoing rumor that Justin Sun had been arrested by Hong Kong authorities upon his arrival in the city. However, there has been no official response from the authorities on these rumours, and Sun immediately responded on social media Twitter by commenting “4”, implicitly denying the rumours.
Sun must respond to the summons within the given time frame to avoid possible default judgments or other adverse consequences of not engaging in the legal process. It is important to note that Sun and his company have not been found guilty of wrongdoing, and the case must be heard in court before any verdict is handed down.
Featured image from Unsplash, chart from TradingView.com