According to information that was obtained from court documents, a civil subpoena was reportedly sent to Justin Sun’s Singapore address by the U.S. District Court for the Southern District of New York. The document further outlined that the response had to be served on the plaintiff (US SEC) or the plaintiff’s agent within a period of 21 days.

Justin Sun Faces Legal Hurdles

The subpoenas come after the U.S. SEC filed charges against the Tron founder earlier last month for the unregistered offer and sale of two cryptocurrencies as well as for engaging in market manipulation and conducting airdrops involving similar securities. The document further warned the 33-year-old crypto entrepreneur of severe consequences for failing to respond. The court was quoted as saying:

If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint. You also must file your answer or motion with the court.

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Sun — who gained popularity after attending the lavish $4.5 million dinner with Warren Buffet back in 2020 — allegedly attempted to artificially inflate TRX’s trading volume through wash trading by having his own employees “engage in more than 600,000 wash trades of TRX between two crypto asset trading platform accounts he controlled.” Sun

Tron’s Price Under Pressure

Following the dissemination of this news, the value of Tron’s TRX coin experienced a marginal decline. Earlier, TRX suffered a big blow when it was reported that there were rumors of Sun’s arrest in Hong Kong. However, it was eventually disregarded after Sun revealed on Twitter why it was a flawed theory.

As things currently stand, the price of TRX is exchanging hands at $0.06538 which represents a drop of 0.11% in the past 1 hour as opposed to a gain of 0.46% recorded over the past 24 hours.

Also Read: What The U.S. PPI Data Mean For Bitcoin’s Future Price Movement?

The post Breaking: New York Court Sends Civil Subpoena To Justin Sun; Gets 21 Days Ultimatum appeared first on CoinGape.

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Filed under: News - @ April 13, 2023 6:20 pm