TRON Foundation and Justin Sun Ask New York Court to Dismiss SEC Lawsuit Over Alleged Securities Fraud and Market Manipulation

The TRON Foundation and its founder Justin Sun have requested the dismissal of a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in March 2023, which accuses them of selling and airdropping unregistered securities, fraud, and market manipulation. In a filing to the District Court of the Southern District of New York, the defendants argued that the SEC failed to establish jurisdiction over foreign defendants and that its attempts to extend U.S. securities laws to predominantly foreign conduct were excessive. Rainberry, another defendant, did not contest the court's jurisdiction but asked for dismissal on other grounds, including lack of fair notice and premature action under the major questions doctrine.