US Lawmakers Raise Concerns Over Justin Sun and TRON
Key highlights
- Justin Sun under US investigation since 2021 with SEC lawsuit in 2023.
- Major WLFI investments could impact token price and retail investors.
- SEC questioned over possible conflict of interest after Trump election.
Potential Conflicts and Investor Risks Highlighted
On September 17, 2025, US lawmakers sent an official letter to SEC Chairman Paul Atkins and the acting director of the SEC’s Corporate Finance Department regarding the activities of TRON founder Justin Sun.
According to the letter, Sun has been under investigation by the US Department of Justice since 2021, and in 2023, the SEC filed a lawsuit against him for alleged fraud involving the cryptocurrency TRX.
Additionally, FinCEN reported that TRON had been used by criminal groups for financial operations. Amid these allegations, Sun reportedly avoids entering the United States due to the risk of arrest.
After Donald Trump’s victory in the 2024 elections, Sun became the largest investor in the DeFi project World Liberty Financial (WLFI), which is linked to the Trump family.
According to the letter, he invested at least $75 million, generating an estimated $400 million profit for Trump. Sun also supported the meme coin TRUMP. The SEC, under the new administration, reportedly dropped its lawsuit against Sun after these investments, raising potential conflict-of-interest concerns among lawmakers.
Investor Risks and Market Implications
Since September 2025, WLFI tokens have been available on major exchanges like Coinbase and Kraken, reportedly adding up to $5 billion to Trump’s wealth. Lawmakers warned that, as a major investor, Sun could potentially manipulate the token’s price, posing risks for retail investors.
Congress has requested that the SEC respond by October 2, 2025, to questions including:
- Whether SEC officials communicated with the White House or Trump family members regarding Sun
- Direct communication with Sun before dropping the lawsuit
- The number of complaints filed against Sun and their processing
- Consideration of a potential TRON ban in the US
Earlier, Arkham experts reported that World Liberty Financial blacklisted Sun’s Ethereum address due to a possible transfer of $9 million in WLFI tokens.
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US Lawmakers Raise Concerns Over Justin Sun and TRON
Key highlights
- Justin Sun under US investigation since 2021 with SEC lawsuit in 2023.
- Major WLFI investments could impact token price and retail investors.
- SEC questioned over possible conflict of interest after Trump election.
Potential Conflicts and Investor Risks Highlighted
On September 17, 2025, US lawmakers sent an official letter to SEC Chairman Paul Atkins and the acting director of the SEC’s Corporate Finance Department regarding the activities of TRON founder Justin Sun.
According to the letter, Sun has been under investigation by the US Department of Justice since 2021, and in 2023, the SEC filed a lawsuit against him for alleged fraud involving the cryptocurrency TRX.
Additionally, FinCEN reported that TRON had been used by criminal groups for financial operations. Amid these allegations, Sun reportedly avoids entering the United States due to the risk of arrest.
After Donald Trump’s victory in the 2024 elections, Sun became the largest investor in the DeFi project World Liberty Financial (WLFI), which is linked to the Trump family.
According to the letter, he invested at least $75 million, generating an estimated $400 million profit for Trump. Sun also supported the meme coin TRUMP. The SEC, under the new administration, reportedly dropped its lawsuit against Sun after these investments, raising potential conflict-of-interest concerns among lawmakers.
Investor Risks and Market Implications
Since September 2025, WLFI tokens have been available on major exchanges like Coinbase and Kraken, reportedly adding up to $5 billion to Trump’s wealth. Lawmakers warned that, as a major investor, Sun could potentially manipulate the token’s price, posing risks for retail investors.
Congress has requested that the SEC respond by October 2, 2025, to questions including:
- Whether SEC officials communicated with the White House or Trump family members regarding Sun
- Direct communication with Sun before dropping the lawsuit
- The number of complaints filed against Sun and their processing
- Consideration of a potential TRON ban in the US
Earlier, Arkham experts reported that World Liberty Financial blacklisted Sun’s Ethereum address due to a possible transfer of $9 million in WLFI tokens.
Read More